According to research, only 1 in 4 people would choose to buy a home built in the last 10 years meaning that if the current excess demand does eventually meet supply at an equilibrium price there may still be a shortage of buyers. I personally find this hard to believe as the saying goes, ‘beggars can’t be choosers’ and by this is I mean, if people are so desperate to get on the property ladder are they really going to turn down the opportunity to buy a new development because it’s not more than 10 years old? I don’t think so.
According to the Future Homes Commission, the main reasons people prefer older homes relate to the lack of storage in new builds, smaller rooms and less natural light. It may be a bit of an oxymoron but it seems people think older homes were built more for the modern family than newer homes currently are.
This week, Home Builder Federation are running a ‘new homes week’ campaign to show people the benefits of buying a new home. These benefits include the deals and offers available on new builds, warranties available and the ‘easy living’ low maintenance lifestyle that comes with living in a brand new home.
Another benefit of buying a new home arises from the fact that they have to be built to the latest environmental standards. Environmental regulations mean new homes are on average six times more efficient than older homes, generating over 60% less CO2 emissions which is around a £500 saving every year on energy bills.
Everyone will have their own preference but it seems to me that with the current demand for homes so high, as much as people may prefer a Victorian or Edwardian home, when it comes down to either getting on the property ladder or continuing to rent, with supply increasing, people may choose the option of a new build. I can’t see any reason why the building of new developments will slow down anytime soon. If the statistic I mentioned at the start of this article is correct and 3 out of 4 people would not purchase a new home, it will only push demand and therefore cost of purchasing an older home higher, making new builds relatively cheaper. So maybe if you are in the market for purchasing a property don’t be so quick to rule out a new home and consider the benefits, both for you the consumer, and for the environment.
Written by: Harry Haddaway