Research commissioned by Skipton Building Society as part of its “SKIPto” campaign reveals a shift in first-time buyer preferences. A survey of 1,000 aspiring homeowners found that 44% are actively considering new-build properties, compared with 30% looking at older homes.
The appeal of new builds is wide-ranging. More than half of respondents (53%) cited modern conveniences and the ease of moving into a ready-made home, while 37% highlighted energy efficiency. Chain-free transactions were also attractive to 31%, helping buyers avoid the stress of being stuck in a buying or selling chain. Outdoor space mattered for 22%, and 19% said the quality of construction would ultimately determine their decision.
Despite this interest, affordability remains a major barrier. Over half (52%) believe new builds in their area are not affordable, and 60% worry there will not be enough supply to meet demand. Saving for a deposit was also a concern, with 35% identifying it as their biggest challenge.
Skipton has developed products and lending criteria to address these barriers. The Track Record Mortgage, for example, is available for new-build houses and flats, offering up to 100% loan-to-value (LTV) for renters who have not owned a property in the last three years. Applicants must show a consistent 12-month rental payment history over the previous 18 months, providing a practical solution to the deposit challenge cited by 35% of respondents.
For those who have managed to save a deposit, Skipton also offers up to 95% LTV for new-build houses and flats, bridging the affordability gap for buyers who do not qualify for the 100% LTV product.
Jonathan Evans, new build lead at Skipton Building Society, said, “Our aim is simple… to be transparent, reliable and provide mortgage options that make sense,” said Evans. “We know that affordability and deposit barriers are real concerns for many first-time buyers, especially in the new-build market. That’s why we’ve developed solutions like our Track Record Mortgage and 95% LTV products, to help renters and aspiring homeowners take that crucial first step.
“By listening to brokers and understanding the challenges their clients face, we’re building a proposition that’s not just competitive, but genuinely supportive. Our lending criteria is designed with brokers in mind, clear, flexible and built to help them place more cases with confidence.”
