Demand for new-build homes fell in the third quarter of the year as buyers delayed major purchasing decisions ahead of the Winter Budget, according to new analysis from Property Inspect.
The research found that fewer than one in five new-build properties currently on the market have secured a buyer, with demand dropping both quarterly and annually.
Across Great Britain, 17.7% of new homes listed for sale were marked as sold subject to contract in the third quarter – a 0.5% fall from the previous quarter and down 1.1% year on year.
Newcastle recorded the weakest demand, with just 4.5% of new-build listings finding a buyer. Liverpool followed closely at 4.8%, while Aberdeen (6.0%), Swansea (6.4%) and Leeds (9.3%) also featured among the slowest markets.
SHARP DECLINES
Portsmouth saw the sharpest quarterly decline, with demand down 6.3% in Q3, followed by Glasgow (-2.7%), Newcastle (-2.0%) and Edinburgh (-1.5%). London also softened slightly, slipping by 0.5% compared with Q2.
Despite the overall slowdown, several cities bucked the national trend. Southampton led the way, with 40.3% of new-build homes already under offer, followed by Sheffield (33.1%), Bournemouth (22.6%), Bristol (21.8%) and Portsmouth (21.7%).
Sheffield also saw the strongest quarterly growth in demand, up 12.5%, while Bournemouth (+7.7%), Plymouth (+6.1%), Swansea (+5.3%) and Southampton (+5.0%) all recorded notable improvements.
COOLING DEMAND
Sián Hemming-Metcalfe, Operations Director at Property Inspect, says: “Buyer demand for new-build homes has undoubtedly cooled in recent months, with fewer than one in five finding a buyer.
“Rising borrowing costs, affordability pressures and the uncertainty surrounding government housing policy ahead of the Winter Budget have all combined to make purchasers more cautious.
“With new-builds commanding a strong premium versus regular housing stock, it stands to reason that the new homes sector will be more vulnerable to these market influences.”
HOPE SPRINGS ETERNAL
But she adds: “However, the picture isn’t entirely negative. Cities such as Sheffield and Southampton demonstrate that appetite for quality new-build stock remains strong when the right product is delivered.
“This underlines that consistency, compliance and condition are more important than ever. At Property Inspect, we’re helping developers and agents meet these expectations with smarter inspection and reporting tools that ensure new homes come to market at the highest standard, helping to bolster buyer confidence even in more cautious times.”
