Demand for new-build properties is far outstripping supply, Clear Property Investment has learned.

A report from upmarket property agency Savills revealed last week that the majority of new-builds were owner-occupied rather than purchased by buy-to-let investors. Many of them are city-based and owned by couples or individuals in their 50s who are downsizing and moving away from family homes in the country. The study showed that in the past three months, 87 per cent of new-builds were bought by people who wanted to live in them - compared to just 42 per cent four years ago.

According to Ed Lewis, of Savills, this has resulted in a shift upwards of quality in new-builds.

He said: "Developers are building units and finishing them prior to sale, as opposed to selling 80 per cent off-plan, as was the norm.

"These days, it has to be the finished article because someone buying for their own use wants something that is ready to move into, including all the landscaping. It has to be good - and the result is that developers have raised their game."

The improvement in quality leads many analysts to predict that new-builds will retain their value - unlike in the past when they were particularly badly hit as house prices began to fall.

New-builds are also beginning to lose their reputation of being 'box-like' with small rooms and low ceilings. Many of them - particularly at the higher end of the market - have begun to incorporate 'traditional' features such as high ceilings and cast-iron radiators.

When seeking out a new-build, there are a number of pointers to keep in mind:

If your new-build is in a new development then there will probably be social housing there too

If you're looking to change something in the design, make sure it's done prior to the sale

Make sure the style of your new home isn't too outlandish and will appeal to others when it comes to selling it on

Never accept the initial price

Advantages of new-builds don't just include the heating aspect ie it's far easier to get warm thanks to central heating and double glazing. There's also the lifts to consider, de-luxe and often en-suite toilets, enclosed parking in the basement of the building, tip-top plumbing and built-in cable internet/television.

For more information on investing in new-build properties in your area, please contact any of the Clear Property Investment team.

 

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