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Demand and house prices on the rise for new build homes

Kaylene Isherwood on market trends in Swindon, the South West and beyond.

With the rise in demand for new builds, it is clear that the supply of new housing on the market can’t keep up.

Recent data shows strong demand in new builds is pushing prices up on these properties, and demand is strongest in the South East and South West.

The WhatHouse? New Homes Index reveals demand and house prices have remained strong for new builds in recent months. This is happening despite the threat of rising interest rates looming.

In the summer, house prices cooled on new homes, and then they increased as we entered the autumn months. In October, house prices for new builds increased an average of 1.8% across Great Britain. This led the average price for a new build to jump by £5,914 to £335,227. Prices are being pushed up by high levels of demand from buyers.

Demand is also continuing to outstrip the number of new build homes available for sale. The number of new builds coming to market was up compared to the summer months. This was particularly the case with the luxury and Help to Buy markets. However, this still is not enough to keep up with the growing buyer demand.

Daniel Hill, Managing Director of WhatHouse?, says: “Although more new build properties are coming to market, the level is still not enough to meet demand. Consequently, price uplifts have been experienced across the UK, with nine of the eleven regions of Great Britain recording an uptick."

"Looking forwards, WhatHouse? predicts that prices will once again cool or flatten. Much will depend on local factors and micro-economies will influence the performance of individual developments.”

Suburban areas

New builds in suburban areas have been seeing particularly strong demand from homebuyers. The COVID-19 pandemic has caused many buyers to start looking for properties offering more space and easy access to nature and the outdoors.

This trend is driving more people away from large cities to more suburban and rural areas. This is expected to continue as many people have made permanent lifestyle changes throughout the successive national lockdowns.

Spotlight on the South West

The volume of new build searches online was up across Great Britain. It was 19.8% higher during October compared to in 2019. Figures from WhatHouse? show that the South West is seeing a substantial number of homebuyer searches for new builds.

In the region, there were 8,627 new homebuyer searches in October. This is the second most out of all regions across Britain and is only behind the South East. The new data shows the strength the South West is seeing in the property market and particularly when it comes to new-build properties.

New housing in Swindon

There are a number of new housing developments being brought forward in Swindon in particular. To meet the growing need for additional housing, an extra 21,600 homes are required between 2018 and 2036 within the Swindon Borough Council.

Wichelstowe is one of the largest local authority joint venture developments in England. The development will bring forward 3,000 contemporary new homes. Some even have stunning views overlooking the Wilts and Berks Canal. This part of the development has been shortlisted for a national housebuilding award for their high-quality design.

The New Eastern Villages will also deliver a total of 8,000 new homes. The latest phase of 1,500 homes, which recently received outline planning permission, will be one of the biggest greenfield developments in the country.

Swindon is expanding. Because of this, new housing is also being considered in villages throughout the borough. More new build developments will become available in and around Swindon throughout the coming years, which will help keep up with the growing demand for more housing.

Kaylene Isherwood

Kaylene Isherwood

Freelance Property Writer

@WriteProperty

 

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