TMA Club questioned 145 mortgage industry delegates at its new-build forum last year and found that, while optimism was high, 40 per cent of brokers felt a lack of supply would be a challenge for newly built homes.
A shortage in materials and labour particularly during the pandemic has threatened the government’s target to build 300,000 homes a year by the mid-2020s.
A further 22 per cent of brokers said a lack of high loan to value (LTV) lending could also impede on the market as they cited it as a challenge when advising clients.
Some 15 per cent said the limited availability of appropriate lending criteria was their main concern.
With two-thirds of new-build enquiries coming from first-time buyers according to respondents, worries were raised around the end of the Help to Buy scheme in March 2023 and the lack of a replacement. Brokers said this could cause first-time buyers to struggle to get onto the housing ladder.
However, 80 per cent of brokers think the end of the scheme will have little to moderate impact on their business and customers.
Craig Hall, director of new homes financial services at TMA’s parent company LSL Property Services, said: “Covid-19 has caused disruption to the new-build sector since 2020, but it’s positive to see that brokers are feeling more upbeat about this area of the market in 2022.
“Despite this, there are clearly still challenges facing the new-build market, with the limited supply of new homes coming to market remaining a critical concern for brokers.”
He added: “We may well see a growing importance placed on shared ownership for homebuyers, while the government’s expanded First Home Scheme may also begin to play an important role.
“Indeed, we hope to see further lender innovation along with the emergence of new private schemes over the coming months to ensure that first-time buyers and others in the new-build sector continue to get the support they need.”
