Property experts have recently noted that the proportion of new homes sold in England and Wales before being built, rose from 35% in 2020 to 37% in 2021. Although this is far below the 47% record witnessed in 2017, it is the first increase seen in this metric since 2016, from which point the trend has been firmly downwards.
2021 was the first time since 2007 that terraced homes were more likely to be bought off-plan than flats. In 2020, 41% of terraced homes sold in this way, which jumped to 45% in 2021, and for flats, these corresponding proportions fell from 50% to 44%. In 2016, 53% of flats were sold off-plan and, in 2008, 69%.
Gary Dobson, senior mortgage and protection manager at Bradley Hall Chartered Surveyors and Estate Agents said: “The lack of pre-existing homes available to buy has meant that owner-occupiers are progressively turning to new builds, with more willing to buy off-plan in the face of limited options on the market.
“Usually, these are chain-free homeowners who have more flexibility on moving dates. They’re also more likely to seek out bespoke, individually designed houses in smaller schemes, rather than flats in city centre blocks.
“After nearly four years of decline, the increase in off-plan sales will provide relief for developers looking to maintain sales rates as Help to Buy slows down.
“Whether this shorter-term shift has the potential to turn into a longer-term trend remains to be seen, but unlike the past, it’s owner-occupiers rather than investors who are likely to continue making off-plan sales in 2022.”
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