Why Rising Numbers of Homebuyers Are Choosing New Build
4th Jul 2023Abdul Ali, executive director at SevenHomes discusses the current homebuyer market and the growing appeal of new builds vs older properties and the assurance they provide in the face of growing energy costs…
Abdul, congratulations on your recent promotion to executive director. Tell us a bit about SevenHomes and your role?
SevenHomes is a regional housebuilder focused on creating quality places to live for a wide range of homebuyers. Established in 2017, the business has developed a stellar reputation for taking complex brownfield sites and turning them into multimillion pound developments, which directly respond to local housing need.
As executive director, my overall responsibility is spearheading the SevenHomes highly experienced land, planning and technical team to secure and deliver residential-led development opportunities across the wider Midlands region, as well as guiding the strategic direction of the business to ensure its continued growth and success in line with the Group’s business objectives.
How is the new build property market currently performing?
Homebuyer demand for new-build properties has seen a slight rise during the second quarter of 2023, according to the latest data released by easyMoney. Its quarterly gauge of buyer appetite for new homes shows that currently, a fifth of all new build homes listed for sale across Britain have already found a buyer, up 0.7% compared to Q1.
However, rising interest rates has undoubtedly led to current cooling market conditions with new build demand 14% down versus the second quarter of last year but with mortgage and interest rates still at a low compared to historic figures, increasing numbers of homebuyers are pushing forward with their move whilst becoming much more astute when deciding on which property to invest their hard earned cash.
With rising energy and consumer goods, EPC ratings have become an increasingly important factor to homebuyers looking to buy new build properties in a quest to keep energy bills to a minimum. This is one of many contributing factors which has led to increased demand for new-build homes in England, which currently sits at 19.2%, according to Sirius Property Finance.
How have energy price increases impacted homebuyer appetite?
Latest figures from Santander found that buyers are willing to pay almost 10% more for energy efficient homes – with energy efficiency now more sought after than traditional features like a garden or off street parking.
With 85% of new build homes having an EPC rating of A or B, compared to just 4% of existing properties reaching the same energy standard according to a recent report titled ‘Watt a Save’ – the popularity of new builds is likely to persist for the near future.
How is SevenHomes influencing its development designs in line with this growing trend?
We have a talented land and planning team who work hand-in-hand with a wide range of industry leading experts to ensure each and every development scheme is forward thinking and designed in line with the latest industry standards, particularly in regard to construction, energy efficiency and sustainability.
Knowledge and technology are constantly evolving, and we therefore strive to design developments to be resilient to our changing climate. Installing low carbon technology, such as solar panels and heat pumps, and using materials in a more energy efficient way to keep in heat will help cut emissions and lower the cost of energy bills for families.
With this in mind, we aim to design our developments to be future proofed with low carbon, energy efficient heating systems, enabling these developments to meet Government’s commitment to The Future Homes Standard.