New Builds in Demand | While headlines stress affordability issues and falling sales, demand for new build homes in the UK is quietly increasing. Buyers remain interested—just not in what is currently available.
Despite the slowing of the wider housing market, interest in new builds continues to grow. Recent research from Mortgage Solutions shows 48% of prospective buyers intend to purchase a new build in 2024. This marks a 21% rise compared with figures from the past two years.
This rising demand points to a shift in buyer preferences. Energy-efficient designs, lower maintenance, and modern layouts are proving popular. Turnkey properties and developer incentives—alongside schemes such as Help to Buy and Deposit Unlock—are attracting first-time buyers and families alike.
Buyers are present, but suitable new build supply is falling behind. What’s missing is not interest, but choice and availability. If developers provide homes that meet current needs, this market segment could outpace the broader slowdown.
New Builds in Demand | Widespread Buyer Interest
New build homes remain highly popular among a wide range of buyers across the UK property market. In a recent survey, 34% of respondents were current homeowners seeking to upsize or move. These buyers often take advantage of developer incentives such as part-exchange schemes and assisted move services, which help simplify the transition.
First-time buyers also account for a significant share—33%—of those interested in new builds. New homes appeal to this group due to their energy efficiency, lower upkeep costs, and modern layouts. According to Lenvi, “one in three Gen Z savers intends to purchase a property within the next three years.” Many are focused on new builds due to affordability features, government-backed support like Help to Buy or shared ownership, and the ease of moving into a completed home.
There is also increased interest from buy-to-let investors and downsizers choosing new builds for their convenience and location. Developments in regeneration zones and commuter areas are especially attractive. This continued appeal across buyer types reflects the strong and growing demand for new build properties in the UK.
Mismatch Between New Build Supply and Buyer Expectations
The property market is focused on new-build homes, yet sales continue to underperform. In 2024, just 10% of all UK property transactions involved new-build properties, revealing a significant gap between what developers are delivering and what buyers are actually looking for.
It’s not just a matter of supply volume falling short. There’s a deeper issue: the homes being built often don’t meet buyers’ expectations. From uninspiring designs and limited space to a lack of character or subpar finishes, many potential homeowners are turning away from new builds.
Modern buyers are seeking homes that offer more than just a roof over their heads—they want energy efficiency, flexible layouts for hybrid living, quality materials, and neighbourhoods with genuine appeal. When these elements are missing, even new stock fails to capture interest.
To close the gap, developers need to shift from a “build it and they will come” mindset to a more buyer-centric approach—delivering homes that align with changing lifestyles, aesthetic preferences, and rising expectations around quality and sustainability.
New Builds in Demand | Why Design and Build Quality Matter More Than Ever
When buying a new build home, design and build quality are now essential—not just desirable. It’s about more than visual appeal. Buyers expect confidence in workmanship, structural strength, and thoughtful layouts from day one.
The Competition and Markets Authority has reported rising complaints around new builds. Common concerns include unfinished snagging work and serious structural problems. These concerns can affect confidence even before buyers book a viewing.
Today’s buyers want homes that offer lasting value. Energy efficiency, secure construction, and well-planned space are now standard expectations—not luxuries. New build homes should deliver more than clean finishes or modern kitchens.
Developers must demonstrate that every home is built with care, not just delivered quickly. Buyers are looking for quality materials, proper insulation, and attention to finishing details. It’s no longer just about ticking regulatory boxes.
Every room, feature, and fixture should reflect the needs of real life. Layouts should support daily routines, from working remotely to family time. Poor design or rushed building work can reduce confidence and delay completion.
A reliable new build must also meet mortgage lender requirements. These include warranty cover from approved providers and proof of final build sign-off. Without this, many lenders will not release funds or approve the mortgage.
“Peace of mind comes from quality, not quantity.” Buyers want to feel confident from exchange to completion. That means fewer snagging issues, full certification, and better handover processes.
In short, new builds’ appeal goes far beyond cosmetic trends. Buyers expect thoughtful planning and high standards of construction. Developers who meet these expectations are more likely to earn trust—and more completions.
New Builds | The Opportunity for Property Investors
This situation presents a clear opportunity. Investors willing to focus on quality, design, and durability can meet the current demand.
Finance options can help. Development exit loans, such as Bridging Loans or Bridge Fusion, offer time to enhance homes post-completion. This avoids rushing properties to market before they are ready.
Refurbishment finance is also key. It can help upgrade older or poorly finished new builds, making them more appealing for buyers or tenants.
New Builds in Demand | Meeting Expectations with the Right Product
The UK needs more houses—it needs the right kind. Buyers want practical layouts, strong construction, and appealing design.
Investors who recognise this will be well placed to succeed. Meeting buyer needs in full is no longer optional—it’s essential.
By investing in quality finishes and reducing snagging issues, investors can help shift public opinion on new builds. With appropriate finance options, there’s every reason to do so.
Thank you for reading our “New Builds in Demand | Investors Can Respond Effectively.” Stay “Connect“-ed for more updates soon!
