How brokers can navigate an evolving new-build market – Hall

As of 2025, the landscape is characterised by ambitious government targets, innovative ownership schemes, and evolving demographic demands.

For mortgage brokers, a thorough understanding of these dynamics is essential to effectively guide clients through this market as it continues to evolve. 

The importance of the new-build market for brokers is underpinned by structural drivers of strong growth for the years ahead. While the UK saw extensive public and private housebuilding in the second half of the 20th century, the country currently faces a shortfall of up to 500,000 homes, according to some estimates.

In response to this lack of housing stock, the UK government has made housebuilding a key part of its strategy to boost economic growth, with ministers targeting one-and-a-half million new homes by 2029. 

Yet, affordability challenges remain, with high property prices and interest rates preventing many buyers from accessing the market, with the new-build sector specifically confronting rising costs, a shortage of skilled labour, and regulatory hurdles. Such factors are driving up prices for new-build properties, with average prices reaching £424,049 in September 2024, 45% more than the UK average of £292,000.

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In this context, it is crucial that brokers are aware of the different types of schemes available to buyers hoping to enter the new-build market since the conclusion of Help to Buy.

Buyers in need of new-build knowledge 

Own New, for example, is just one of the options that can support buyers in securing new-build properties with a lower monthly interest commitment. Launched in 2024 with Barratt Developments, it currently works with over 150 homebuilders and mortgage brokers in the UK. 

Other schemes like shared ownership also have an important role to play in supporting buyers. While it has been available since the 1980s, shared ownership has since been enhanced to help more borrowers who would otherwise be unable to own their own home. While the scheme is not exclusively for first-time buyers, shared ownership is particularly important for this demographic, with first-time buyers accounting for over 80% of shared ownership mortgages, according to Leeds Building Society.

Separately, brokers should be prepared to work with buy-to-let (BTL) customers, many of whom have a growing interest in the new-build market. Despite regulatory changes and tax adjustments in recent years, demand for rental properties remains robust.

Cities like Manchester and Birmingham have become hotspots for new-build developments being snapped up by BTL investments, driven by strong rental yields and ongoing urban regeneration projects.

Looking ahead, it’s clear that the UK’s new-build housing sector presents a blend of opportunities and challenges. For mortgage brokers, staying informed about these developments is crucial to guiding clients effectively through the evolving landscape of new-build homeownership. 

This is an extract from Kensington’s full article, which you can find on its website: https://www.kensingtonmortgages.co.uk/intermediaries/k-hub-and-service-levels/blog/read/the-evolution-and-future-of-new-builds-in-the-uk