New data from whathouse.com has revealed that searches for new build homes have slowed by around by 7% during April, suggesting that home hunters across all new home types including, luxury, Help to Buy, and retirement, are worried about the cost-of-living crisis, indicating that regardless of lifestyle stage, many buyers may hit pause on new homeownership until affordability is more certain.
However, while search cooled by 7% during April, this follows a 3-month period of unparalleled, sustained growth. People’s search for new build homes has now returned to pre-pandemic levels, a strong indicator that, for the time being, general market sentiment remains healthy. The data suggests that homebuyers’ dual desire to put into action long-planned lifestyle changes and reduce household running costs continues to fuel interest in new build homes.
Daniel Hill, Managing Director, whathouse.com, comments: “The first three months of 2022 represented a seemingly limitless surge in home hunter interest in new build homes, as people took action to achieve their long-planned lifestyle goals once final pandemic restrictions were lifted. Now, as the cost-of-living crisis bites, the brakes are starting to go on. We’re seeing an early wave of home hunters reconsidering new home searches and delaying research into suitable developments. The reality of housing affordability and continued economic uncertainty means this slowing looks set to carry on through May and for the remainder of the summer.
"However, we don’t expect search interest to fall off a cliff: there remains a significant number of people who have taken the opportunity to save over the past twenty-four months and are now in a position to take advantage of the relatively affordable cost of borrowing to step-up to a new build. We are by no means in a crisis, and the new homes market should see a positive year provided that the economy doesn't significantly worsen more quickly than anticipated.”
Whathouse.com anticipates that May, traditionally one of the best months for home hunter interest, will close on a slightly lower than expected search total - buoyed by buyers who are still able to take advantage of a relatively affordable cost of borrowing.
