NEW HOMES are being built in the regions where demand is the highest according to new research, and it should come as no surprise that the south east is a hot spot.
Debt advisory specialists Sirius Property Finance analysed current buyer demand for new homes across England and how this demand matches up with stock being delivered and under construction.
Demand for new-build homes in England currently sits at 19.2% of the total market. In the third quarter of 2022, 40,210 new homes were completed while construction was started on a further 45,590.
The highest new-build demand is currently in the South West, where homebuyers have snapped up 26.7% of listed homes.
The region has also seen the third-highest number of new-build completions (4,950) in the last quarter, with work starting on a further 5,070, which ranks fifth in the nation.
In second place, is the South East, with 25% of all listings being for new homes. This relates to 7,380 completed new builds, and work starting on a further 7,710.
The East of England is the only other region to enjoy above average new-build demand at 23.3%, and ranks second for both new-build completions (5,839) and new home starts (6,970) in Q3, 2022.
Demand is below average in the East Midlands (17.5%), London (17.3%), West Midlands (16.4%), Yorkshire & Humber (16.2%), and North West (10.2%) while the number of new-build starts and completions are middling.
In the North East, demand is at its lowest (8.6%), and is home to the lowest number of completions (2,020) and starts (2,450).
Head of corporate partnerships at Sirius Property Finance, Kimberley Gates, said:
“Our latest analysis shows that developers are doing a great job of bringing a consistent supply of housing to the market, while also maintaining this pipeline, with construction starting on more or less the same level of stock that is reaching the market.
“At the same time, the focus of this delivery has been well tailored to mirror demand amongst homebuyers, so that new homes are reaching the areas of the market where they are needed most.”
She said that more homes needed to be built to match demand.
“Building in low demand areas for the sake of boosting figures and evening out distribution across every region is neither in the interest of house builders nor homebuyers,” she added
