Will the Budget Propel the UK New-Build Property Market?
New-build properties are a great investment for many buyers, whether you are purchasing your first place, moving to a new home, or looking to invest in the new-build property market. There’s a growing call for more steps to give this market a boost.
There’s a lot of talk that the UK housing market might get more attention in the upcoming Spring Budget. Surprisingly, the last statement didn’t have much to say about housing. Many people in the industry are asking for some significant changes, from tax cuts to incentives for building new homes.
The market for newly built homes is crucial for the government to consider. It’s widely recognized as a big priority right now to increase the country’s housing supply. Michael Gove has already talked about plans to make it easier to get planning permission to get things moving.
The Help to Buy scheme, which was really popular and helped a lot of first-time buyers, isn’t around anymore. It used to give them a hand in buying a brand-new home. Not surprisingly, a recent survey of property pros found that bringing back Help to Buy was at the top of their wish list.
Over a third (35%) of those surveyed said they’d like to see Help to Buy come back in the Budget, or something else that helps the market for new homes and supports first-time buyers. Just over a fifth (22%) hoped for a break or reduction in stamp duty, while 17% wanted a cut in inheritance tax.
For 16% of people in the survey, the choice was incentives on stamp duty for those downsizing, according to a survey by Countrywide Surveying Services. And 10% were looking for more support for landlords – something that groups like the NRLA have also been talking about.
Incentivizing New-Build Properties
Even though Help to Buy is no longer an option, there are other schemes around that encourage investing in newly-built properties. One of these is Deposit Unlock, which lets buyers purchase a new home with just a 5% deposit through specific lenders and housebuilders.
Those who use this scheme can access competitively priced mortgages. For instance, this makes the purchase of a new home much more affordable than it might otherwise be.
Various developers also provide their own schemes and perks for buyers. For instance, they might offer a kind of ‘cashback’ to assist with your deposit. They could also contribute towards expenses like stamp duty, legal fees, or other property-related costs.
An increasing number of lenders now have “green mortgage” products available, which are sometimes applicable to new builds. These mortgages often come with lower rates and are typically for properties with top-notch energy efficiency ratings, a feature commonly found in new builds.
Apart from the financial benefits, the energy efficiency of new-build homes is a major attraction for both homebuyers and investors. Energy bills have noticeably increased over the last few years, making energy-saving homes more appealing. Additionally, with the growing environmental consciousness, having an energy-efficient home is high on many people’s priorities.
The ten-year warranty that accompanies new-build property provides an extra level of security and reassurance for buyers. It acts as a significant incentive, covering many potential costs during the first decade of ownership. In certain cases, this warranty can even be extended.
New-Build Property: Optimistic Trends in the Housing Market
Countrywide Surveying Services did a survey about the UK property scene for 2024, and found that 41% of folks reckon there’s some reason to feel positive. Another 41% also mentioned there might be a bit of optimism. In fact, it seems like most folks are feeling pretty good about the year ahead.
The rest of the bunch included 13% who weren’t quite sure about what’s coming for the housing market in 2024. Then there’s 5% who weren’t feeling too hopeful, saying there’s probably not much to look forward to. Interestingly, no one said there’s absolutely no reason for optimism.
Another poll pointed out the big housing issues on people’s minds right now. They want to see more social housing available. Furthermore, they also seek better planning processes from local councils to boost the housing supply. Additionally, they want support for first-time buyers and more protection for tenants facing ‘no-fault’ evictions.”
Martyn Stones, the Director of Technical Services at Countrywide Surveying Services, commented on the findings. He stated, “It’s pretty clear from these results that the industry wants the Government to step in and help out more.” This is especially true for giving first-time buyers a leg up and closing the widening gap in housing availability, particularly in terms of affordability. And I reckon this applies no matter which party is in charge.
“The upcoming budget could really shake things up in the housing and mortgage markets. It’ll be interesting to see which of these ideas actually get put into action and how they’ll play out in the short, medium, and long term.”
