Demand for New-Build Homes in England Currently Sits at 19.2%

Housebuilders are doing an impressive job of tailoring housing supply across all regions of the country in relation to current homebuyer demand for new homes.

Analysis was conducted on current buyer demand for new homes across England* and how this demand matches up with the level of new-build stock being delivered and under construction.

Demand for new-build homes in England currently sits at 19.2% and further insight shows that, in Q3 2022, 40,210 new homes were completed while construction was started on a further 45,590.

The highest new-build demand is currently being seen in the South West where homebuyers have already snapped up 26.7% of listed homes.

The region has also seen the third-highest number of new-build completions (4,950) in the last quarter, with work starting on a further 5,070 which ranks fifth in the nation.

At 25%, the South East is home to second-highest buyer demand while the region ranks first in England for new-builds completed (7,380) and started (7,710).

The East of England is the only other region to enjoy above average new-build demand at 23.3%, and ranks second for both new-build completions (5,839) and new home starts (6,970) in Q3, 2022.

Demand is below average in the East Midlands (17.5%), London (17.3%), West Midlands (16.4%), Yorkshire & Humber (16.2%), and North West (10.2%) while the number of new-build starts and completions are middling.

It’s the North East where demand is at its very lowest (8.6%), which is reflected by its also being home to the lowest number of completions (2,020) and starts (2,450).

Kimberley Gates, Head of Corporate Partnerships at Sirius Property Finance, the debt advisory specialists responsible for the research, commented:

“Our latest analysis shows that developers are doing a great job of bringing a consistent supply of housing to the market, while also maintaining this pipeline, with construction starting on more or less the same level of stock that is reaching the market.

At the same time, the focus of this delivery has been well tailored to mirror demand amongst homebuyers, so that new homes are reaching the areas of the market where they are needed most.

Of course, we need to build more homes to match growing demand, but building in low demand areas for the sake of boosting figures and evening out distribution across every region is neither in the interest of house builders nor homebuyers.”

*New build buyer demand based on the level of homes listed for sale that have already been marked as sold subject to contract, or under offer, as a percentage of all listings.