Opinion: Demand for new builds grows strongly

A portrait of happy young family with a toddler girl moving in new home.

Buyers continue to be motivated by the same lifestyle factors which have dominated the past two years - Credit: Getty Images/iStockphoto

New build developments in Suffolk remain in high demand and the lifestyle changes that have driven the market for the last two years continue to be a big motivator for buyers.

Our sites at Laureate Fields in Old Felixstowe, Ashfield Park in Elmswell, near Bury St Edmunds, The Lilacs in Trimley St Martin, near Felixstowe, and The Limes in Great Cornard all continue to attract plenty of interest.

According to the most recent survey by the Home Builders Federation (HBF), site visits and net reservations on new build schemes were both higher in January 2022 than when compared to January 2021.

Site visitors compared to last month meanwhile had a net balance of +73, which is the highest figure since the survey began in 2011. Net reservations for first time buyers and home movers had net balances of +42 and +36 respectively.

RMG Photography - February 2022Savills (UK) Ltd - Ipswich staff portraits.Pic - Richard Marsham

Max Turner, who leads the new homes team at Savills Ipswich - Credit: Richard Marsham

With strong price growth across the housing markets the path to home ownership has only become steeper. Increased costs of living, higher national insurance and the prospect of a lower threshold for student loan repayments will also make saving for a deposit all the more challenging.

Consequently, many more first time buyers may well choose new build properties as a way to get themselves on the property ladder. Lots of developments offer financial support and help with paying a deposit. Shared Ownership and Help to Buy are two popular examples, but developers will also offer other incentives.

Help to Buy will end in April next year, to be replaced by the government’s First Homes scheme. This will offer first time buyers in England the chance of home ownership with discounts of 30-50 per cent on market value – but the scale and impact is likely to be very different.

CGI of a family home at The Lilacs, Trimley St Martin, Suffolk, which is for sale with Savills

A property at The Lilacs, Trimley St Martin, a site which Max says is continuing to attract strong interest - Credit: Savills

As a result, the next few months could well see a rise in demand for new homes that currently qualify for Help to Buy – such as those we currently have on sale at Laureate Fields. By cutting the size of the deposit needed from 10 to five per cent the scheme has reduced one of the biggest obstacles to home ownership.

You don’t need to have legally completed on your new build home until 31 March 2023 to qualify – so there is still plenty of time. But completion can sometimes take months from placing your reservation fee – and you want to ensure homes that qualify for the scheme are still available.

For more information, contact Max Turner at Savills Ipswich on 01473 234826 or by email at MTurner@savills.com