Buyer interest in luxury new-build homes across Britain surged by 25% during July, indicating that the new homes market continues to be affected by shifting trends in lifestyle priorities due to the pandemic.
According to data from WhatHouse?, growth in the luxury new homes sector is expected to continue as post-pandemic life returns to normal and homebuyers can make firm decisions based on new lifestyle requirements.
The national average price of new home property coming to market has stayed static at £338,339 in July (£338,042 in June).
Top three new home search areas during July:
1: South East of England has demonstrated the most buyer demand during July 2021, achieving 25,719 new home buyer searches.
2: West Midlands continued its climb for the second month in a row, jumping from third to second position, achieving 23,683 new home buyer searches during July 2021.
3: North East of England has secured its first top-three search position with 13,581 new home buyer searches during July 2021, representing a 170% increase on June’s figures.
July has achieved a +32% increase in new home demand, recording a total of 166,137 new home buyer searches, compared to 126,199 during June 2021.
Daniel Hill, Managing Director, WhatHouse? comments: “Changing lifestyle requirements continue to reshape the new home market, and nowhere is this demonstrated more clearly than in July’s WhatHouse? New Homes Index. London has been ousted from the top three new home search table, supplanted by West Midlands and North East, both experiencing spikes in search. It’s also interesting to note that total luxury new home searches increased by 25% during July. The East Midlands, West Midlands, North West and Scotland all top performers - reporting a +45% luxury new home search increase since June.
"This all points to a large scale post-Covid re-evaluation amongst home buyers. As employers firm up plans for flexible work-from-home expectations, home buyers are now able to confidently consider space requirements and lifestyle aspirations. What the WhatHouse? New Homes Index is demonstrating is a growing desire amongst buyers to consider luxury new homes in regions that may previously have been beyond their search comfort zone.”
David O’Leary, Policy Director, Home Builders Federation, said: “As the wider market settles into equilibrium, demand for new homes continues to be robust with many builders reporting strong forward order books. More than ever home buyers, both first-time buyers and home movers appear to be putting an emphasis on the low running costs and improved energy efficiency that new homes provide.”