New-build homes in London’s commuter belt are substantially more likely to have secured a buyer than those in the capital, new research suggests.
Analysis by UK Property Development (UKPD) finds just 6.3% of new-build properties currently listed in London are sold subject to contract (SSTC).
That compares with 17.4% in Essex, meaning the proportion of available new-build stock to have secured a buyer is almost three times higher than in London.
Surrey follows at 16.3%, while 15.7% of new-build listings in Hertfordshire have reached SSTC.
COMMUTER APPEAL
The figures come despite London having a considerably larger new-build market, with more than 7,000 homes currently listed for sale compared with between 600 and 1,800 across each of the commuter areas analysed.
UKPD argues the difference points towards buyers looking beyond the capital to secure more space while retaining access to London.
Andy Morrison (main picture), Director of UK Property Development, says: “What we’re seeing is a very compelling case for the London commuter belt. Buyers don’t necessarily want to sacrifice access to the capital, but increasingly they are questioning whether they need to live within it, particularly when their budget can deliver considerably more outside London.
“For new-build developers, counties such as Hertfordshire are particularly well positioned. Buyers can remain within easy reach of London while gaining the additional space, quality of life and longer-term family appeal that can be much harder to achieve within the capital itself.”
DEVELOPMENT OPPORTUNITY
Morrison believes the trend provides an opportunity for developers targeting well-connected locations outside London.
He adds: “A well-designed new home in the right commuter location can offer buyers the best of both worlds: the connectivity and career opportunities associated with London, but with more space to put down roots and a home that better suits the next stage of their life.
“The stronger levels of demand we’re seeing across the commuter counties demonstrate that buyers clearly recognise this balance.”
