The analysis from the new-build portal, Newhomesforsale, based on 58,000 homeowner enquiries indicated a growing interest in new-build homes among existing homeowners.
The increase in interest from second- and third-steppers comes as Burnham’s Your First Home scheme aims to boost demand among first-time buyers by focusing exclusively on new-build properties.
North East tops surge
The largest increase was recorded in the North East, where enquiries from existing homeowners rose by 43%. This was followed by the South East at 34% and the East of England at 26%.
Enquiries increased by 25% in the South West, 24% in the North West and 22% in the West Midlands.
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Yorkshire and the Humber recorded a 19% rise, followed by Scotland at 18%, the East Midlands at 16% and Wales at 7%.
London was the only region to record a decline, with enquiries falling by 1%. The capital experienced a number of vacant new builds earlier this year, too.
The portal said builders had more three- and four-bedroom family homes available compared with the resale market and suggested incentives aimed specifically at existing homeowners could help attract second- and third-steppers.
More enquiries for part exchange
Lucy Woodhall, sales director at Persimmon & Charles Church Suffolk, said: “We’ve definitely noticed a shift in who’s coming through our doors with more existing homeowners asking about part-exchange and chain-free completion, particularly at our Suffolk developments.
“It tells us the industry needs to think harder about what this audience actually wants, rather than defaulting to first-time buyer incentives.”
Mark Hincks, director at Newhomesforsale.co.uk, said the upsizer market was becoming an increasingly important source of leads for housebuilders.
He said: “Many buyers in the resale market face the risk of fall throughs and uncertainty on timing a purchase – new homes [offer] flexibility and greater certainty. This is reflected in 23% increase in buyer enquiries nationally and shows a clear opportunity to market the benefits of new homes to people who already own a home.”
Hincks added that existing homeowners had different motivations and barriers compared with first-time buyers, with part-exchange, stamp duty contributions and lower running and maintenance costs among the benefits that could appeal to this group.
