Purchasing a new build property can be a great option for those looking to move into a new or their first home. Despite the benefits of buying a new build home, the Office for National Statistics’ (ONS) House building data, UK suggests the number of new builds being completed is actually decreasing.
In the last financial year (2023/34), 162,340 new build properties were started across the UK, compared to 202,360 and 207,690 in 2022/23 and 2021/22, respectively. This is a significant decrease that could be attributed to uncertainty around the general election. But some claim that developers are currently reluctant to purchase land for fear of losing money.
Increasing construction and labour costs are also leading to developers reducing their new build output. This was reflected in the ONS’ data, which found 183,610 new build homes were completed in the financial year 2023/34, which is significantly lower than 2022/23 and 2021/22 where 210,420 and 205,410 were completed, respectively.
The commencement of new builds and subsequent completions in 2023/24 were less than previous years, suggesting developers have made the conscious decision to reduce workload. This could be a result of a difficult housing market in 2023, where the number of housing transactions decreased significantly.
More new build projects started than were completed in nearly 40% of Local Authorities across the UK in 2023/24, with Greenwich, Manchester,and Spelthorne boasting the largest discrepancies between homes started vs completed – Greenwich had over 1,600 more project starts than completions. Whereas Glasgow City, Central Bedfordshire and Wandsworth had significantly more house completions than starts. Interestingly, Sheffield had 820 more completions than starts in 2023/24, whilst North East Derbyshire had 10 more starts than completions.
Paula Mayfield, Senior Associate in Residential Conveyancing, said “It’s surprising that the number of new build homes started and completed has decreased over the last few years, but this could be a result of the decreased sales in 2023 experienced by the entire housing market. Developers may have decided to delay new projects until the market picks back up, which makes sense. We fully expect buyer behaviour to return to normal as mortgage rates continue to decrease, so the number of new build developments should increase over the coming years once again.
“For those looking to buy a new build home, it’s vital to instruct a specialist conveyancer that knows how to deal with the nuances around new build properties. They will also be able to search the property to ensure there are not any hidden issues.”
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