"While city centre prices remain out of reach for many, new build developments on the outskirts offer a compelling alternative, balancing cost with accessibility."
- Andrew Calder - Accord Mortgages
There’s no doubt that today’s housing market is evolving, and it’s clear that new build properties are playing a pivotal role in shaping the future of homeownership.
The numbers show that they are appealing to a wide range of groups, and with only 41% of buyers of this property type being first-time purchasers, the reasons for this are diverse.
New builds offer features that align with how people live and work today, open-plan layouts, energy-efficient designs, and dedicated home-working spaces, which have become increasingly important in the post-COVID world. These homes are designed with flexibility in mind, appealing to everyone from young professionals to downsizers seeking low-maintenance living.
Energy efficiency is also a major draw. With 86% of new builds rated EPC A or B, compared to just 5% of older homes, the environmental and financial benefits are clear. For younger buyers, sustainability is often a key motivator. For landlords, energy-efficient homes represent a smart investment, helping them avoid costly retrofits and future-proof their portfolios.
Affordability also plays a role. While city centre prices remain out of reach for many, new build developments on the outskirts offer a compelling alternative, balancing cost with accessibility. And although new builds are often regarded as more expensive to purchase, the long-term savings on maintenance and energy bills can make them a worthwhile choice.
However, the sector hasn’t been without its challenges, and the end of the Help to Buy scheme in England left a noticeable gap in support. That’s why we’re lobbying the government for a more inclusive and flexible replacement that supports a wider range of property types and buyer circumstances, which we have called for in our policy paper Home Improvements.
At Accord, we’ve taken proactive steps to bridge the gap left by the Help to Buy scheme by increasing our maximum loan-to-value (LTV) to 95% for new build homes. We’ve also introduced other changes, designed to tackle the biggest challenges faced by today’s borrowers – finding a deposit and affording their mortgage. These include introducing parity pricing to eliminate mortgage product premiums for new builds and raising our maximum loan sizes. We’ve also lowered our minimum deposit requirements and expanded our Cascade Score range to include these properties.
Recognising the importance of energy efficiency, last year, with input and support from our strategic partners, we also updated our affordability model to reflect the cost savings associated with greener homes. All these changes are designed to make new builds more accessible and attractive to a wider audience.
But while new builds are a vital part of the solution, they’re not the whole answer to the UK’s housing crisis. A broader, more holistic approach is needed—one that includes unlocking existing housing stock, revitalising empty properties, and supporting those looking to downsize.
Government support remains crucial. The pledge of £39 billion for affordable housing is a welcome step, particularly as affordability ratio requirements have historically been a barrier to new build development. Simplifying planning processes and incentivising construction will also be key to increasing supply at the pace and scale required.
Looking ahead, at Accord, our focus is on continued innovation, living up to our reputation as a New Build Lender – not just a lender that does new build. Whether it’s refining our lending criteria or advocating for reform with the government, we’re committed to helping more people to achieve their homeownership goals—whether they choose a new build property or not.
