There has been a gradual reduction in the proportion of first time homebuyers opting for new builds, latest data from UK conveyancing solicitors showed.
The data, analysed by researchers at conveyancing solicitors firm Bird & Co, indicates a three-year consecutive decline in the interest for new build properties compared to older properties between 2021 and 2023.
The researchers said interest in new builds may not be as high as anticipated despite government initiatives to promote the construction of more new properties.
The data also indicates a stagnation in the number of first-time buyers in 2023 with 68% of enquiring buyers not in possession of a property already. This figure has not changed since the turbulence post-Covid, said Bird & Co.
The firm said this factor could potentially explain the diminished interest in new builds which are typically an attractive option for many first-time buyers, given that several home-buying schemes are exclusively applicable to newly constructed properties.
It added that it could also be down to the affordability of new homes which has peaked in 2023 especially with mortgage rates at an all-time high.
Daniel Chard, partner at Bird & Co, said: “Constructing new homes loses its purpose if they remain unaffordable, particularly for aspiring first-time buyers striving to step onto the property ladder.
“The essence of promoting new developments should be rooted in accessibility, ensuring that the dream of home ownership is within reach for those embarking on this significant milestone. Otherwise, government aims of building homes and getting people onto the property ladder loses its true meaning, becoming a mere exercise in construction rather than a pathway to fostering inclusive and sustainable communities.
“Our insider stats demonstrate that, so far, current schemes are having minor impacts on the overall picture for first time home buyers. Meanwhile, second-time buyers are still snapping up many properties and filling the market with more rental homes and business opportunities.”
