As indicated in the recent data, there has been a 14% decrease in homebuyer interest for new construction.
According to recent data released by easyMoney, only one location in the UK saw an increase in demand for new construction over the previous year.
The market is entering what is usually its busiest season of the year, and a minor increase in new build demand across the country in the second quarter of this year suggests a "air of optimism."
"Demand for newly constructed homes increased by 0.7% in the second quarter of this year compared to the first.
However, a quarter of all new construction homes posted for sale in Britain have sold in Q2 2023, down 14% from the second quarter of 2022, according to easyMoney's quarterly barometer of buyer appetite.
According to the survey, Southampton has the most demand for new construction right now, with 45% of those properties being purchased.
Only Leicester experiences a yearly rise in demand for new construction. The largest annual reduction in the desire for new construction was observed in Cardiff, where it fell by 24% over the previous 12 months.
"We've certainly seen more uncertain market conditions materialize since the end of last year, with buyers acting with a greater degree of caution following the mortgage market turbulence that followed the mini budget in September," said Jason Ferrando, CEO of easyMoney.
"This has been the case in the new-build market as a whole, and all but one city has seen a decline in demand compared to the much more favorable circumstances observed at this time last year.
"However, 2023 has undoubtedly begun with an air of confidence, and we're now starting to see this filter through, with demand picking up just a little bit in the second quarter of this year when compared to Q1.
Given that the economic backdrop is still, at best, unstable, it will be fascinating to observe if this positive momentum is maintained during what is often the busiest time of year for the market.
According to the data, Bristol saw the largest quarterly growth in new construction demand, up over 15% from quarter one. Southampton was second with a 7% increase, while Leicester was third with a 4% increase.
Leeds, Cardiff, Swansea, Edinburgh, and Newcastle were the only other large cities easyMoney examined to demonstrate a rise in buyer demand for new construction.
Birmingham experienced the largest quarterly decline in appetite, a reduction of 6%.
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