Homebuyers driving increased demand for new-builds in major cities

The latest New-Build Demand Index by Unlatch reveals that Leeds, London and Cardiff saw the largest quarterly uplifts for new-build homes in Q2.

The index monitors changing demand for new-build homes across 20 major cities in the UK. Demand is calculated by studying the ratio of new homes already sold subject to contract or under offer as a percentage of all new-build stock listed for sale.

The latest index shows that Leeds presented the largest increase in buyer demand for new-build homes, seeing an increase by 9.1% in Q2 versus the first three months of the year.

Despite London underperforming compared to the rest of the UK where topline house price growth is concerned, the capital has seen the second largest uplift in demand for new homes, climbing 3.4% quarter to quarter.

Cardiff has seen new-build demand boosted by 3.2% in Q2, with Newport (2.9%), Glasgow (2.8%), Aberdeen (2.3%) and Birmingham (1.7%) also seeing an increase.

However, when it comes to current demand for new-builds, the index suggest that it’s the nation’s coastal cities that remain most in favour with the nation’s homebuyers.

Bournemouth ranks top, where 64% of all new-build homes had already gone under offer or sold subject to contract in Q2, followed by Bristol (54.5%), Southampton (53.7%), Cardiff (53.2%), Plymouth (44.4%) and Portsmouth (40.6%).

Lee Martin, head of UK for Unlatch, said: “Demand for new homes remains robust across Britain and over a third of those listed for sale have been snapped up in the second quarter of this year.

“This demand remains strongest across many coastal cities as the pandemic legacy continues to influence buyer preferences based on lifestyle over the convenience of a commute, for example.

However, there are clear signs that this tide is starting to turn with Leeds and London driving the market with respect to the quarterly change in demand levels. This uplift across London, in particular, is a very positive sign given the fact the capital has struggled following an exodus of homebuyers to greener pastures during the last two years.“