Investment vehicle, Alliance Fund compiles a ‘buyer demand index’ for new build properties on a quarterly basis, based on comparing the percentage of new-build homes which are under offer or sold subject to contract with the overall stock listings of new properties.
It found that around one in five (19.2 per cent) of new homes had been snapped up already, up marginally by 0.8 percentage points on the previous quarter. However it is down by a stark 16.3 per cent annually.
The most in-demand city for new-build buyers was found to be Bournemouth, where 45.2 per cent of new-build homes were bought, with Liverpool seeing the lowest level of demand at just 2.7 per cent.
Over the quarter, the biggest jump was seen in Cardiff, where new buyer demand increased by 10.4 per cent compared with the final three months of 2022. The only other cities to see demand increase over the quarter were Southampton, Nottingham and London.
Another Welsh city saw the worst performance over the quarter, with demand in Swansea plunging by 11.8 per cent from the previous quarter.
Only two cities have seen demand increase on an annual basis. Demand for new build homes has grown by two per cent in both London and Aberdeen.
Stockpiling new homes
In terms of stock, new build homes now account for 7.5 per cent of those available, down by 0.6 per cent on the previous quarter.
Iain Crawford, CEO of Alliance Fund, said that while the first quarter is often “more subdued”, this year it has been even quieter than usual.
He added: “Buyers and developers alike have been sitting tight since the final quarter of 2022 following the uncertainty spurred by September’s mini budget and this has largely contributed to static levels of demand.
“However, 2023 has begun on a far stronger note and it’s clear that market confidence remains high amongst the nation’s buyers. As a result, we expect new-build market activity to continue to gain momentum as the year progresses and as developers push on with their intended plans to deliver stock to the market.”
