For those who didn’t already know, UK Housing is in a crisis situation. There are two problems causing this. Firstly the supply of housing to the market and secondly, the accessibility.
Many are struggling to access the property ladder whilst others have the issue of not being able to go up the property ladder. Some housing experts believe that one of the solutions to the housing crisis is by building new houses, aka new-builds. But even though it may seem like a viable solution, what do Brits think to buying new-builds?
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Well look no further, we have the answers!
The Housing Crisis
According to the National Housing Federation, they estimate to shake the crisis off and sustain the housing market, the UK needs to build 340,000 new houses a year. A rather large amount!
In 2018, in England alone there were only 165,000 new-builds completed. So, new-builds should solve the problem. In theory, yes, however, new-builds face many problems.
The volume of the amount of new-builds needed isn’t the only challenge. There is the issue of the overall desirability of these new properties that are unfortunately hindering them.
When Boris Johnson did his first speech on domestic policy as PM, he commented on the attractiveness of new-builds. He said that there an “emphasise the need, the duty, to build beautiful homes that people actually want to live in.”. This statement has been echoed by many Brits according to recent research.
FJP Investment Research
Recently, to understand how homeowners felt about new-builds, FJP Investment conducted research around new-builds. They asked over 1000 homeowners and property investors questions regarding pricing and desirability of new-builds.
Even though new-builds attract bad press, over three quarters of survey respondents (78%) admitted to viewing at new-builds when looking for their dream home.
But, having said that, 63% also felt that most UK new builds are unattractive. Additionally, 60% of respondents worried that new-builds would be built to a low standard hence putting them off purchasing a new-build.
How do we make new-builds more desirable?
One of the main issues to arise from the research is the attractiveness of new-builds. As the figures suggest, a lot of people are put off buying them. To start tackling the issue, many believe that the first thing that needs to be addressed is the quality of the homes. As conveyed by the results, many are too nervous to buy a new-build due to snagging that may arise from the purchase. According to a report by New Homes Review, 87% of those asked had issues after buying there new home. This can seem frustrating when the property is new and especially when some developers have poor after sales care.
Should you purchase a new-build?
You may be a landlord, a homeowner or a first time buyer. Whoever you are, it can be hard understanding whether a new-build is for you.
- First time buyers – 15% of any new housing development has to have affordable housing. But even though it is ‘affordable’ sometimes it can seem more out of reach than older properties. Depending on your financial circumstance may depend on whether you can afford a new-build.
- Homeowners – buying a new-build can be a great way to go up the property ladder; especially since most developers run part exchange schemes. However, it can be frustrating to wait for your property to be built and or live on a building site.
- Landlord – one of the positives with buying a new-build is that there is no maintenance that needs to be done once you purchase it. Although, this may mean that it may be hard to make a higher than 7% rental yield on the property.
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I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.