The Intermediary – April 2025 - Flipbook - Page 7
RESIDENTIAL
Opinion
Maintaining
new-build
momentum
H
omeownership
goals, affordability
challenges and
house prices remain
key concerns for
borrowers, and a
regular feature in the headlines.
At the same time, we’re seeing
growing interest from consumers in
the housing supply chain, drawing
greater aention to the positive role
being played by the new-build sector.
Not only is this sector helping to
address the shortage of homes, but
it’s also supporting rising demand for
energy-efficient properties and lower
household running costs.
This aention is being mirrored
by buyer awareness and sentiment.
January’s Barclays Property
Insights report revealed that 65% of
respondents support accelerating
housebuilding efforts to address the
UK’s housing needs. In addition,
42% see new-build developments
as delivering a ‘halo effect’ for local
communities, driving economic upli
and regeneration.
Unsurprisingly, location
remains the top motivator for those
considering a new-build (51%). Other
key aractions include the absence
of a property chain (38%), modern
fixtures and fiings (35%), and energy
efficiency (24%) – a growing priority
for many potential purchasers and
existing homeowners.
Rising tides
Younger buyers, in particular, are
leaning into the appeal. While 42%
of UK adults say they would consider
a new-build, this rises to 52% among
18 to 34-year-olds. When compared
with over-55s, younger buyers are
also three-times more likely to view
new-builds as offering beer value for
money than existing homes.
This is emerging against a
backdrop of structural change, with
the recently announced Planning
and Infrastructure Bill likely to be
pivotal in the new-build journey.
Aimed at streamlining planning
processes, unlocking land, and
supporting strategic, cross-boundary
development, the bill has the potential
to remove longstanding roadblocks
to housing delivery. For the mortgage
market, that means more homes and
more choice.
In parallel, the Chancellor’s £2bn
package to deliver up to 18,000 new
social and affordable homes adds
further momentum. The funding will
support development on sites that can
be delivered within this Parliament,
helping the Government work
towards its 1.5 million target.
Projects must begin by March 2027
and be completed by June 2029, with
most of the funding allocated for
2026/27 – following the conclusion
of the current Affordable Homes
Programme in 2026.
These combined initiatives are set
to increase the volume and variety of
housing stock and, in turn, prompt
more conversations with clients
around new-build options.
First-time buyers (FTBs) remain
a key factor. According to the latest
analysis from the Office for National
Statistics (ONS) and Financial Conduct
Authority (FCA), the overall number
of new first-time buyer mortgages in
the UK has been falling since the peak
in 2021, and in 2023 was the lowest
since 2013, at 282,000.
However, sales of first-time
buyer mortgages made up a greater
proportion of total residential
property sales in 2023 (38.4%) than
they did 10 years before (28%).
Affordability continues to shape
buyer behaviour, with many FTBs
MATT ASTON
is head of new-build
at Barclays
moving beyond major urban centres.
In 2023, the South East, North East,
and Northern Ireland all recorded
a rise in the share of FTB mortgage
activity, underlining the growing
importance of accessible pricing and
perceived value.
Quality concerns have traditionally
been a barrier when considering newbuilds, but the industry is actively
addressing this. The New Homes
Quality Board (NHQB) is driving a
change in standards, with more than
half of new homes across England,
Scotland, and Wales now covered by
the New Homes Quality Code. From
improved complaints handling and
best-practice snagging to developer
audits, the NHQB is raising the bar
and rebuilding buyer confidence.
Lenders also have an important role
in driving the success of the market,
and close working relationships with
intermediary partners are essential.
Not only to provide buyers with the
right products, but also to support
more informed decision-making.
From affordability solutions
to incentives linked to energy
performance, advisers and lenders
working together can help shi
outdated perceptions and highlight the
real value of new-build homes.
Whether it’s guiding a first-time
buyer or advising movers looking for
low-maintenance, energy-efficient
living, the intermediary market
remains central to helping clients
weigh up their options.
By operating in unison, we can help
more buyers see new-build as a smart,
sustainable choice, and support the
wider effort to ease pressure on the UK
housing market. ●
April 2025 | The Intermediary
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