"With rising energy costs and stricter regulations on property standards, new-builds offer first-time buyers, homeowners, and landlords a future-proof solution"
- Stephanie Daley - Alexander Hall
Internal data from mortgage adviser Alexander Hall shows that new-build homes are appealing to more than just first-time buyers. Multiple buyer demographics, including home movers and landlords, are taking advantage of new-build benefits, supported by recent improvements to mortgage affordability for energy-efficient and specialist properties.
New-builds aren’t just for first-time buyers
Alexander Hall’s internal data reveals that first-time buyers account for 59% of new-build transactions, but home movers (22%) and buy-to-let investors (19%) also form a significant part of the market.
Additional findings highlight that:
27% of new-build buyers are aged 40 or above.
Studios (4%) and one-bed flats (37%) make up 41% of new-build sales, while two-bedroom properties are the most popular (45%), and three-beds account for 11%.
Benefits for first-time buyers
New-build properties provide several advantages for first-time buyers:
Chain-free purchases reduce the risk of delays or fall-throughs.
Homes meet modern safety and energy-efficiency standards.
Schemes such as Deposit Unlock, Own New, and FTB-specific affordability products support buyers in securing their first home.
Benefits for home movers
For those moving home, new-builds offer:
Move-in-ready properties that require minimal DIY or upgrades.
Opportunities to personalise off-plan designs.
Energy-efficient homes that lower ongoing utility costs.
Convenient locations near green spaces, shops, healthcare, and transport links.
Benefits for landlords
Landlords can also gain from investing in new-builds:
Modern properties attract higher-quality tenants and can command higher rents.
EPC ratings of A or B meet the expected 2030 rental regulations.
Lower maintenance costs and ten-year warranties reduce unexpected expenses, making them lower-risk investments.
Mortgage affordability advantages
Recent improvements to lender products have made mortgages for new-builds more accessible:
Energy-efficient homes may qualify for lower interest rates, with reduced energy costs considered in affordability assessments.
Low-deposit options, such as 5% for houses and 5–10% for flats, are increasingly available.
Developer incentives can contribute to stamp duty and legal costs.
Longer mortgage offer validity for off-plan purchases may extend up to 9–12 months.
Flexible lending is offered for professional occupations, key workers, and first-time buyers, including higher income multiples and more competitive terms.
“With rising energy costs and stricter regulations on property standards, new-builds offer first-time buyers, homeowners, and landlords a future-proof solution,” said Stephanie Daley, director of partnerships at Alexander Hall. “Not only are they more energy-efficient, saving hundreds on bills each year, but they also come with developer incentives, modern amenities, and fewer maintenance concerns. In today’s market, buying a new-build is not just a smart financial decision, it’s a lifestyle upgrade."
Daley added, “We’ve also seen lenders introduce a range of new products and initiatives to help the nation’s homebuyers when it comes to securing a mortgage on a new-build property, further boosting appeal beyond existing incentives. The combination of low-deposit options, enhanced income multiples, and specialist purchasing schemes is creating opportunities for buyers who may have thought a new-build was out of reach. With the right guidance, now could be one of the best times in recent years to secure a new-build home.”
