Urban living still aspirational as London new home searches surge

New data out today in the New Homes Index reveals the hottest areas across Britain for new home buyer demand with London top of the list for month-on-month growth through the first three months of 2021. An encouraging sign that, post-pandemic, urban life remains attractive.

Enquiries for new home properties in London demonstrated the greatest regional increase (January 6,905 to March 9,378).
Next in the top three is Scotland (January 1,856 to March 2,541) followed by North West of England (January 1,822 to March 2,367).
25% of national total demand for new homes is now in London, where 5% of national new homes available are listed. This is the biggest demonstration of new home demand outstripping supply across Britain.
The government’s Help to Buy scheme in England started on 1 April 2021. Reassuringly for the first-time buyers now able to benefit from the scheme concerns relating to the new regional value caps are not playing out, as the average price of Help to Buy new home properties coming to market is below the ceiling price set from region to region (including London).

Daniel Hill, Managing Director, WhatHouse? comments:

“From the search behaviour experienced on Whathouse.com, we have found 25% of demand for new homes is now in London, so it’s a big jump, especially when we consider predictions surrounding an anticipated mass escape to the country. The growth in demand for new homes in the North West of England and Scotland point to people leaving cities behind post-pandemic in favour of lakes, mountains and villages but, as our data shows, for many the perceived shortcomings of urban life may not be a game-changer after all.

The new home property market has remained fully open and home builders have embraced innovations in virtual viewing to such an extent that buyer enquiries and viewings are at an all-time high. The signs all point to a positive spring and summer new home surge, with some time left for buyers to benefit from stamp duty holidays in England and Wales, the 95% mortgage guarantee scheme, successful vaccination roll-out, increased sense of national optimism, and changing space requirements driving momentum”.

Stewart Baseley, Executive Chairman, House Builders Federation said:

“The new homes market continues to perform very strongly. Site visitor levels, demand and sales rates have been at a high level since the market reopened last May underlining consumer confidence in new homes. Demand for new homes through the Help to Buy scheme continues to be strong, despite the introduction of the regional price caps. We will continue to monitor the impact of changes to the scheme. Ensuring high LTV mortgage products are available on new build homes is key to future levels of demand and supply.

Demand for affordable housing in London continues to be acute, emphasising the need for the Mayor to agree a realistic, deliverable plan that prioritises housing delivery and supports his social and economic ambitions. Similarly, now the elections are out of the way, the other Metro Mayors need to use the powers devolved to them to ensure their housing and planning policies address the supply shortfalls and affordability issues their areas face”.