Number of properties available for purchase before being constructed soaring to levels ‘never witnessed before’
Record numbers of homes sold will be “off plan” by the end of the year, a property group told Morning Wire this morning.
The National Association of Property Buyers believe the number of properties available for purchase before they have been constructed will soar to levels never witnessed before.
According to data shared with this paper, 37 per cent of new homes sold in England and Wales were sold off plan, up from 35 per cent in 2020.
Jonathan Rolande, from the National Association of Property Buyers, expects the numbers to rise sharply in upcoming weeks.
“The lockdown blip has seen the numbers sold off plan reduce but we expect these to rise quickly to match and overtake the previous high of 47 per cent in 2017.”
Rolande told Morning Wire that “city centre apartments will lead the increase with increasing numbers sold to owner occupiers rather than investors.”
“Buyers love the certainty of fixing a price on a home at today’s value, no matter what the market does in the future during construction.”
Jonathan Rolande
Statistics show that in 2021 24 per cent of detached homes were sold off plan (up from 21 per cent in 2020), 33 per cent of semi-detached homes (up from 31 per cent), 45 per cent of terraced homes (up from 41 per cent).
Off plan flat sales fell to 44 per cent from 50 per cent in 2020. primarily because the pandemic hit city living needs.
Buyers of off-plan paid a record £1.1bn in deposits in 2021, compared to £348m in 2007.
Today most off plan sales are to owner occupiers when before 2016 most off plan sales were driven by investors.
Cotswold District had more off plan sales than anywhere else – 86 per cent of new homes completed there last year. In the past London has dominated the off plan sales market.
Rolande, the director of House Buy Fast, continued by saying: “Older buyers often take advantage of part exchanging the family home for a brand new apartment or smaller, more manageable house.”
“The PX process gives guarantees unavailable in the ‘standard market’ eliminating viewings and fall throughs. But buyers shouldn’t forget that new builds are premium products and are priced accordingly – there is often better value to be had in the second hand market.”
“Buying off plan is a decision made out of a mix of personal preference and necessity, very often people commit early because they simply cannot find what they want elsewhere thanks to the incredible shortage of property coming to the market,” Rolande explained.