There’s been a four-year decline in interest in newly built properties, a conveyancing company claims. 

The percentage of homes purchased over the past four years that were new builds were: 2021 -14.35%; 2022 – 13.68%’  2023 – 11.18%; and 2024 – 10.39%.

The company, Bird & Co, claims that interest in new build properties reached its highest point in February of 2024, accounting for 13% of inquiries. 

The government’s 2025 initiative to construct 1.5 million homes over five years aims to boost housebuilding in high-demand areas, increase homeownership, and drive economic growth. However, the data suggests that this effort has yet to produce the desired impact in terms of demand.

Despite this, the share of first-time buyers has grown from 68% in 2023 to 71% in 2024. But Bird & Co suggests that while we might expect that first-time buyers are more likely to buy new builds. In reality the combination of lower mortgage rates and falling house prices has meant more first-timers could purchase older properties.

Additionally, the government’s Lifetime ISA program, which enables first-time buyers to save up to £4,000 annually with a 25% bonus from the government (up to £1,000 per year) until the age of 50, has made homeownership more accessible for this group.

Bird & Co partner Daniel Chard says: “The government’s budget has outlined a plan for the construction of mass affordable new builds. In theory, this should increase buyer interest in new builds over 2025.

“However, as demonstrated in 2024, the government’s housing initiatives do not always lead to a significant increase in new build sales.

“This initiative needs to provide housing that is affordable enough to ensure that homeownership becomes a realistic goal for a wider group of people. This is especially prominent now that Stamp Duty thresholds are once again decreasing, making property ownership that little bit less achievable.

“Without meaningful accessibility, government efforts to build homes and promote property ownership risk falling short, turning into a focus on increasing housing numbers rather than creating inclusive and sustainable communities where people can truly thrive.”