Existing homeowners were the largest group of buyers interested in purchasing a new-build home, at 34%, followed closely by first-time buyers, who accounted for 33%.
According to data collected by Mortgage Advice Bureau (MAB), new-build appeal peaked in February 2024, when 59% of those shopping around for a home wanted to buy new, up from 25% in the same period in 2023.
Driving this was a significant increase in demand in England, up by 29% to 53% in the last two years, according to MAB.
Developer incentives drive new-build popularity
It is thought that an increasing number of incentive schemes offered by developers are behind the surge in new-build popularity.
The new-build energy advantage
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Contributions to the deposit, legal fees and stamp duty, part-exchange options and giveaways such as carpets, appliances, and garden landscaping have all been offered to entice households to buy new.
On average, 43% of those aged 19-25 wanted to buy a new-build property last year. However, it was the older generation who came out on top, with 46% of those aged 54-65 looking to purchase new.
Interest in new builds remained at a similar level for those in the 24-35, 34-45, and 44-55 age brackets, with a median percentage of 33%.
MAB said generation Z and millennials are typically more tech-savvy and environmentally conscious, and are more likely to be attracted to the modern features, low maintenance, and eco-friendly aspects of new-build properties.
Older generations, meanwhile, tend to be on fixed incomes and may be looking to reduce their overall living expenses, making the energy efficiency of new builds more appealing, says the network.
Ben Thompson, deputy chief executive at MAB, said: “The new-build sector is becoming increasingly innovative, so it’s no surprise that demand for these types of properties is on the rise among homebuyers of all ages.
“Our data – and wider economic conditions – indicate that buyer confidence in the new-build market is on the rise, and I would hope this further encourages the government to significantly accelerate the level of housebuilding in the UK.”
In December, the government proposed giving councils the ability to buy cheaper land using compulsory purchase orders, which is expected to support the development of new-build homes and infrastructure.
This comes after the government announced changes to the planning system and National Planning Policy Framework, as well as mandatory housing targets for councils.
