Zoopla’s New Homes Outlook report reveals strong demand for new homes outside London is set to continue
26th November 2021
Zoopla’s New Homes Outlook report shows buyer demand outside London remains above the five-year average, although in all regions demand for new homes slightly lags the re-sales market
Total new homes completions will ease in 2022, at 170,000 homes in England - in line with 2019 levels
The new report marks the launch of Zoopla’s brand new Housebuilder Hub, which will provide free data and analysis for housebuilders from the company’s market-leading research team
Zoopla, the UK’s most comprehensive property destination, has released its New Homes Outlook Report, which highlights key market indicators that impact the new homes industry. The report will live on Zoopla’s brand new Housebuilder Hub, which will provide free data and analysis for housebuilders from the company’s market-leading research team.
New homes delivery back to 2019 levels
Key insights in the report include analysis that delivery of new homes in 2022 will be in line with 2019 after a boost in delivery this year. Zoopla estimates that completions for the year will be 170,000 homes in England.
New homes demand lags resale counterparts
Demand for new homes outside London remains above the five-year average, due to the ongoing search for space, despite the ending of the stamp duty holiday. Even so, buyer demand in the new homes market has not reached the same peaks seen in the resale market.
The North West, Yorkshire and the North East have seen strong new home buyer demand at more than 30% above the five-year average as the relative affordability of these markets prices in buyers and fuels demand.
In London, new homes buyer demand remains around 25% below the five-year average. London is an international real estate market, especially central London, and this market has been affected by multiple lockdowns and no international travel. Zoopla anticipates returning workers and overseas buyers will provide a boost to the new homes market over 2022.
Meanwhile, Help to Buy continues to support sales in the new homes market with the scheme supporting sales worth £91bn since its inception in 2013.
Further insights from the report can be found on Zoopla’s new Housebuilder hub which will provide research and insight for housebuilders on every step of the development life cycle, from planning through to final plots remaining. It currently contains a wide range of Zoopla’s latest research reports, which can be downloaded for free, including its 2022 demand and sales transactions forecast.
New content will be added to the hub regularly on topics including the search terms buyers are using right now and the sizes of homes most popular with new homes buyers. To access the hub and download reports, visit the Housebuilder Hub.
Commenting on the launch of the report and the hub, Alex Rose, Director of New Homes at Zoopla said: “We’re excited to unveil our Housebuilder Hub, which will provide regular insights to housebuilders on what’s happening in the market. As we head into 2022, strong house price growth coupled with robust buyer demand looks set to provide a sturdy platform for housebuilders. However, the increasing cost of living and the expected rise in mortgage rates will likely have some impact on household buying power over the next two to three years and these headwinds are worth bearing in mind.”
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