The outlook for new homes in 2023

Our research shows that while 20% of buyers start their property search with a preference for new builds, a further 45% have no preference. That means 65% of the home buying audience on Rightmove are open to buying new².

We also found that buyers searching for a new build property specifically, are more likely to enquire about properties over 50km from their current address, than those enquiring about resale properties³.

That means your marketing needs to work harder than ever to reach those out of area buyers. Your Rightmove Account Manager can use the Lead Mapping Report to see lead hotspots for your developments.

Sources: 1 – Rightmove data, average asking prices for New Build and Resale properties Jan 2019 compared to Jan 2023. 2 – Rightmove consumer survey 2020. 3 – Rightmove data November 2022

All that demand translated into record transactions – with almost 1.5 million property transactions in 2021 compared to just under 1.2 million in the more normal markets of 2018 and 2019¹. With those transactions now complete (and many more in progress) it’s no surprise that demand levels are moving back in line with 2018 and 2019’s levels².

Your Account Manager can give you a localised view of the unique supply, demand and price dynamics for each of your developments to help you spot opportunities for the year ahead.

Sources: 1 – HMRC property transactions over £40,000 2018-2022. 2 – Rightmove data, enquiries sent to new build developers Feb 2018 – December 2022

With applications for Help to Buy ending in October 2022, New Homes Developers may be concerned about the impact on demand from First Time Buyers. However, our research shows that many would-be First Time Buyers are making lifestyle changes so they can save more towards a deposit.

Most common cost savings for First Time Buyers:

• Reducing spending on going out (72%)
• Using less gas and electricity at home (55%)
• Spending less on holidays (49%)
• Reducing how much they spend on a food shop (48%)
• Cancelling subscription services like Netflix and Amazon Prime (35%)

Read more here:  How First Time Buyers are saving for a deposit

Want to attract more First Time Buyers? Speak to your Account Manager for ways Rightmove can help you reach them.

Mortgage rates started edging down towards the end of 2022. Even if the base rate goes up, mortgage rates are expected to keep going down.

The latest data shows that someone looking to take out a five-year fixed mortgage with a 15% deposit would now be looking at an average rate of 4.82%, compared with 5.90% in October.

“The mortgage market is now looking more positive compared to the last three months of 2022, which should give people more certainty and confidence ahead of the traditionally busy spring home-moving season…Lenders are competing for business and have been reducing their rates further.” says our mortgage expert Matt Smith.

Read more here: February’s interest rates update

The stamp duty changes announced in September’s mini-budget are due to remain in place until 2025. Towards the end of 2023 and moving into 2024 we might see heightened demand from homeowners and First Time Buyers looking to make the most of lower rates before they increase again in 2025.

One of the first places buyers visit when they’re thinking about moving is Rightmove. On average they spend 7-12-months researching on Rightmove before deciding they want to move. This is when they start their property search in earnest by visiting Rightmove daily. Their search then usually lasts around 6-months.

That gives you an 11–18-month window to influence those buyers with your brand marketing on Rightmove, before they make that all-important buying decision.

Source: Understanding Rightmove Users, February 2021