Spotlight | New homes:

new perspectives

New homes - new perspectives
New homes: new perspectives

13 September 2017, by Savills Research

New home transactions are growing, but slower than before. And with lower investor demand, it’s more important than ever for developers to know who is buying new homes and where they are buying them

Summary

Sales over £600,000 grew 12% between 2015 and 2016, compared with 31% the year before. Prime developers should target their product to specific customer groups to maintain high sales rates.

 

Help to Buy continues to support the core new build market. Housebuilders must deliver housing below the £600,000 cap in desirable markets to access these buyers. 99% of Savills first-time buyers purchase properties under this value.

A cheaper pound is driving up international investor demand in major city centres. Domestic demand has been hit by tax changes, so UK investors are seeking out cheaper opportunities in smaller regional markets.

Size matters to downsizers. The average new build downsizer flat is around 1,100 sq ft, almost double the market average of 625 sq ft.

Value differences of up to £1.5 million are tempting growing families out of London. 44% of upsizers buy a home with four or more bedrooms.


 
New build in numbers

This report is based on Savills new homes sales which cover the breadth of the market in terms of values, including high-value prime markets. Savills new homes has 25 teams across the UK, and its data offers a snapshot of the current prime new build market. We sell more than 4,000 new homes each year, of which 56% are outside of London. To find out more, contact: George Cardale, 01179 100 351

Articles from Spotlight: New homes: new perspectives

New dawn for new build

13 September 2017

New dawn for new build

While transaction growth at the top end of the market is cooling, Help to Buy is supporting the core new build market. Developers need to consider new price points and buyer lifestyles

New build buyer profiles

13 September 2017

New build buyer profiles

We analyse four types of new build buyer – Investors, Downsizers, Upsizers and First-Time Buyers – and investigate the types of properties they purchase, along with the popular regional markets for each

 
 

Receive the latest research

Key contacts

George Cardale MRICS

George Cardale MRICS

Director
Residential Development Sales

Savills Bristol

+44 (0) 1179 100 351

 

Jim Ward

Jim Ward

Director
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7409 8841