Demand for new build homes remains, but the market buyers, brokers and lenders are navigating today looks very different to just a few years ago.
Affordability pressures, rising build costs, changing consumer confidence and the end of Help to Buy have all influenced the sector. For brokers, understanding these changes – and how they affect buyers in different parts of the country – is becoming an increasingly important part of supporting clients considering a new build home.
The end of Help to Buy has been a particularly significant change for first-time buyers. Deposits, affordability and monthly payments can all influence the options available, placing greater emphasis on starting conversations early and helping prospective buyers understand their mortgage position before beginning their property search.
There are also broader questions about how new build homes should be assessed. The perceived ‘new build premium’ is often part of the conversation, but comparisons with second-hand properties are not necessarily straightforward. Location, property type, build quality, energy efficiency and running costs can all influence the overall proposition for an individual buyer.
In the fourth episode of Newcastle Building Society’s Powered by Partnership podcast, Francesco Di Pietro, Head of Intermediary Mortgages at Newcastle Building Society, is joined by Mark Pender, Director at MAB New Homes, and Greg Cunnington, Head of Strategic Accounts at Legal & General Mortgage Services, to explore what’s next for the new build market.
Together, they discuss life after Help to Buy, affordability and the perceived new build premium, as well as what separates a broker who handles new build cases from a genuine new build specialist. They also consider how greater collaboration between brokers, lenders and developers could help support buyers and the future growth of the market.
Although this episode was recorded before the proposed Your First Home scheme was announced, the discussion explores many of the challenges that continue to shape the new build market, from affordability and deposits to access to homeownership.
If you’ve missed any of the previous episodes you can access them via the links below
Episode 1: First-time buyers you can view it here
Episode 2: Affordability you can view it here
Episode 3: Self Employed you can view it here
Episode 5 of the Powered by Partnership Podcast series will be published next week on the 20th October
