Why demand for new-build houses is rising among buyers

June 30, 2020 by Heidi

Brokers

The most recent figures issued by Knight Frank show there has been a rise in the demand among homebuyers for new builds in comparison with the same period in 2019 – with two reasons being cited for this.

Demand for these homes among people looking to buy rose by 4% during June 2020, compared with June 2019. Knight Frank is stating there was also a notable level of demand in May, which saw a higher number of people express interest in new build homes than in any single month of last year. The estate agency argues that the principle reason for this surge in demand is because interest built while the industry was shut down and is now being pursued with the loosening of restrictions.

Beyond that, Knight Frank is also indicating that it expects this figure to keep rising during the next year or so at least, because fewer new houses will be completed in 2020 due to delays to building work caused by the pandemic. This will severely restrict the supply of new homes and keep the demand for them very high among buyers until the building industry gets back on track.

James Mannix from Knight Frank noted that companies that build homes will be watching the housing market very closely and will see a rise in demand as an indication that they need to boost their output.

This housing situation is also likely to make competition fierce among mortgage advisors with CeMAP training.