"The year ahead also promises to be one of significant change for the new build sector, particularly as we edge closer to the end of Help to Buy."
However, despite their optimism, 40% of brokers believe a lack of housing supply is the biggest challenge facing the new build sector.
As well as limited housing supply, one in five (22%) brokers believe that a lack of high LTV lending is the biggest challenge they face when helping clients looking to buy a new home. A further 15% think that the limited availability of appropriate criteria from lenders is the greatest concern.
However, the market has seen some positive recent movement from lenders, especially within the high LTV space, including the Deposit Unlock scheme which is expected to attract more lenders during 2022.
TMA Club’s research also suggests that the majority of enquiries (62%) brokers receive come from first-time buyers. Despite the Help to Buy scheme coming to an end in March 2023, 80% of brokers think that the end of scheme will actually have little to moderate impact on their business and customers.
Craig Hall, director of new homes at LSL Property Services, commented: “Covid-19 has caused disruption to the new build sector since 2020, but it’s positive to see that brokers are feeling more upbeat about this area of the market in 2022. Despite this, there are clearly still challenges facing the new build market, with the limited supply of new homes coming to market remaining a critical concern for brokers.
“The year ahead also promises to be one of significant change for the new build sector, particularly as we edge closer to the end of Help to Buy. With many developers forward selling their properties, it is likely that we will see a post-Help to Buy market come into fruition from Q2 2022. As a result, we may well see a growing importance placed on Shared Ownership for homebuyers, while the Government’s expanded First Home Scheme may also begin to play an important role. Indeed, we hope to see further lender innovation along with the emergence of new private schemes over the coming months to ensure that first-time buyers and others in the new build sector continue to get the support they need.”
