When it comes to investing in property, the location is everything. As estate agents in Doncaster always say, there are three things that you need to keep in mind while investing in property in the UK: location, location, location. The location of the property is very important, be it for new build properties, off-plan properties or existing properties. From property prices to predicted property prices, from crime statistics and safety to the neighbourhood and connectivity, everything is dependent on the location of the property. Today, let’s talk about the role of location when it comes to investing in the new build market in the UK.
A collective report between NHBC Foundation and Savills that is based on the thoughts and views of over 4500 new build homeowners analyses some of the most important factors that potential buyers look at before investing in property. Interestingly enough, new build homes that require minimum maintenance along with off-street parking are the top two demands among new buyers. The location of the property is one of the biggest factors that impacts the investment decision, be it for buyers who are interested in buying property in high-density urban areas, medium-density residential areas as well as suburban homes. The location continues to be a top priority among all categories of buyers, be it upsizers, downsizers, relocators, first-time buyers as well as property investors. Following that, the quality of the neighbourhood, the size of the home, the design of the home and the energy-efficiency rating of the home are a few other important criteria for new build home buyers.
We also need to look at the impact of the Covid-19 pandemic on buyer demand and buyer preferences. Before the Covid-19 era, homeowners and renters were looking to stay in the city, closer to their place of work. However, when the pandemic hit, the buyer preference changed completely and people were not looking to move out of the city and into the suburbs and boroughs. When the pandemic started in 2020 up until the end of 2021, the average price of property in North England and West England grew much faster than the average price of property in South England and London. This difference in price growth is directly related to the ‘race for space’. New buyers now attributed more value to the size of the property, the location of the property, the type of property and of course the outdoor space that comes with the property.
In the past few months, the demand for new build homes in the UK property market has soared. In a recent study conducted by Insinkerator, the data showed that within the next 3 years, around 58 per cent of renters hope to buy their own home. With that being said, about 50 per cent of the existing homeowners in the study were looking to buy a new property, preferably a new build. Post the Covid-19 pandemic, the housebuilding sector in the UK bounced back tremendously. In fact, the number of new builds in the UK post the Covid-19 pandemic hit the highest figure ever in the last 20 years. One of the biggest reasons that homeowners and renters are looking to buy new-builds is because there is no property chain. When there is no chain in a property transaction, the process of buying becomes much faster and does now leave room for any errors.
Another factor that we need to keep in mind is that these new build properties are being developed in up-and-coming locations, which is something that attracts more buyers. As mentioned earlier, the location of a property is of utmost importance to buyers across all categories. Since these new build properties are being constructed based on buyer demand and buyer preferences in upcoming towns, developing cities and well-connected boroughs, it is safe to say that the location of a new build and buyer demand for a new build property go hand in hand. Lastly, these new build homes tend to be more energy efficient which is a big advantage. Buyer demand has moved towards energy-efficient homes; so the luxury of finding an energy-efficient new build home in a great location is simply unparalleled. As the demand for new build homes in the UK continues to increase, developers and builders will have to continue to keep up the supply while ensuring they find the right location for these upcoming projects.
