Demand for new-build properties increased by 4 per cent in June compared to the same time last year, according to data from Knight Frank.
The figures follow the estate agency’s prediction that delivery of new homes will fall by 35 per cent this year as a result of construction delays caused by lockdown.
Knight Frank says that the jump in buyers registering their interest in new homes is the result of pent-up demand after the property market was put on hold during lockdown.
It says that May also saw extremely strong demand as more applicants registered their interest than during any month of 2019.
Viewing numbers have recovered to 6 per cent below the five-year weekly average after sales and marketing suites began to reopen.
Knight Frank forecasts that supply is likely to remain constrained for the next 12-18 months, demand will increase in the short term, prices will hold steady and there will be a strong long-term planning pipeline.
Knight Frank head of residential development James Mannix says: “Housebuilders will be keeping a close eye on the recovery of the housing market; once they start to see demand return, they will look to gradually increase output.
“The speed of this demand increase will also affect land-buying decisions. “Deals are still taking place, but at a slower rate with delayed completions, Covid-19 clauses, and extensions to bid deadlines.”
Click here to view original web page at www.mortgagestrategy.co.uk
Discussion about this post