Despite ongoing political uncertainty, there has been a significant increase in home buyer confidence in the UK, according to real estate advisory services company Savills.
“Realistically priced properties are attracting particular interest, especially in the new build market. Here, the level of viewings and new applicants are up considerably,” Savills said in its latest housing market commentary.
In some areas, there has been an improvement in sentiment in both the new build and second-hand markets, although this bounce back seems more pronounced in the new build market. First-time buyers and home movers continue to drive the new build market.
According to the Home Builders Federation survey, new build buyer confidence is at its highest since June 2017. It has moved from being the second biggest constraint on development in Q4 2018, to the ninth biggest constraint (out of 15) in Q1 2019. This indicates the return of stability in the housing market.
Net reservations on new build sites were also up. The annual balance of opinion jumped from -28 per cent to 18 per cent between February and March 2019. Housebuilders have remained optimistic that sales rates will rise.
This improvement is arguably seen in the wider market, with the RICS UK Residential Market survey for April also pointing to an improvement in market sentiment, Savills report said.
The greatest changes in new buyer activity are in markets that are still seeing steady house price growth, or where price corrections have provided opportunities for buyers: Savills Research