NEWLY BUILT HOMES
Newly built homes are as popular as ever with our buyers. Properties are
selling quickly this year, going from launch to under offer in just six weeks and
achieving an average of 95% of the asking price. Increasingly, the convenience,
quality and amenities of new developments are appealing to buyers who
weren't initially considering a newly built home. While just 8% of buyers in
the first half of 2023 initially registered with our new homes team, 16% of
buyers actually bought a new home. New homes developments increasingly
offer an attractive lifestyle and can now include sociable work spaces, retail
outlets and gyms. They are particularly appealing to home workers
but are also close to transport and
nearby bars and restaurants.
East London is the most popular area for City
workers to rent. 40% of City workers who
rent here live in an EPC A/B-rated home.
Opening up new
areas for investment
Improvements to London's extensive
transport network and large-scale
regeneration has opened up new places to
live, which are commutable to central
London. As well as good transport links,
amenities and locations, domestic buyers
and investors are increasingly looking for
cost-effective, energy-efficient homes,
something which new build can offer.
Analysis of renters working in the City
highlights the investment appeal of these
new builds, particularly in East London.
In the last 18 months, 34% of renters
who worked in the City and moved home
chose to rent in East London. Of the rest,
31% stayed closer to work in Central
London boroughs while just 15% moved
to South London, 13% to the West and
7% to the North.
Of the City workers analysed, just under
a fifth (19%) moved to a rental home with
an EPC rating of A or B. In East London,
where the highest proportion of City
workers live, the figure is as high as 40%.
A large proportion of A- or B-rated homes
in this location are likely to be new build,
with the higher energy efficiency rating
meaning they are more economical to run,
something which is appealing to both
buyers and renters.
ENERGY-EFFICIENT
HOMES APPEAL TO
CITY RENTERS
Dataloft, based on City workers
beginning new tenancies since 2022
PARMA SULH, CEO VISION GROUP
FROM NEGOTIATIONS THROUGH
TO COMPLETION THEY HANDLE ALL
ASPECTS OF OUR SALES, WHICH
ALLOWS US TO FOCUS ON
COMPLETING DEVELOPMENTS
WITH EASE, HENCE AIDING THE
SUCCESSFUL ACQUISITIONS OF
FURTHER PROJECTS.
INTERNATIONAL TRENDS
On their regular visits to Hong Kong,
our APAC team have identified a high
propensity for buying off-plan. Buyers
and investors pay today's prices and
often receive incentives, while the
delay to completion allows them to
prepare financially and potentially tap
into lower interest rates in the future
when the balance is due for payment.
Buyers tend to be interested in homes
near water, like the Docklands.
Buy-to-Let investors often prefer areas
with comprehensive regeneration
schemes, where they receive betterthan-average
capital appreciation.
16%
18%
25%
17% 40%
17%
OF BUYERS WHO
BOUGHT A
NEW HOME
ONLY 8% INITIALLY
REGISTERED WITH THE
NEW HOMES TEAM
OF THE
Foxtons, H1 2023
Low
% of homes
lived in by City
workers and
rated EPC A/B
High
% OF CITY WORKERS
LIVING IN THE AREA
NORTH SOUTH
EAST
CENTRAL
WEST
A
B
A
B
A
B
A
B
A
B
A
B
Autumn Statement 2023 | Newly built homes 6