Homebuyers are showing interest in new town developments, mortgage brokers have told a major lender.
A study from Santander found that more than 80% of mortgage brokers were seeing a rise in demand for properties in new towns.
The East of England was the most desirable, with 52% of brokers reporting demand in the region. This was followed by Scotland, the South East, and the South West, with 22% of brokers saying clients were interested in these regions.
Wales was also in demand, according to 22% of respondents.
As part of the government’s plans to build one-and-a-half million homes, new towns will be created on greenfield land, with each site expected to include around 10,000 homes.
Some 78% of mortgage brokers said they were optimistic about the government’s plans to create new towns and its impact on homeownership, with 83% saying it would dramatically change the homeownership landscape in the next three years.
How the housing landscape is set to shift
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Among clients who were interested in new towns, nine out of 10 brokers said clients were drawn by access to medical facilities, with 58% saying this was an “extremely important consideration”.
Access to quality schools was said to be important by 88%, as well as good transport links, according to 87%.
David Morris, head of homes at Santander, said: “The growing appeal of new towns highlights a shift in priorities among today’s homebuyers. In addition to affordability and getting a foot on the property ladder, buyers want a holistic community that supports their families’ needs, with reliable healthcare, strong education options, and seamless transportation.
“There have been unavoidable challenges, as is the way with any new and ambitious initiative. However, support structures and incentives such as expanded loan to value (LTV) offerings may help to alleviate a degree of the strain being felt by both brokers and buyers.”
Supporting the new-build market
Although there was notable interest in new towns, 99% of mortgage brokers surveyed said they faced a number of issues when advising on a new-build purchase.
This includes a lack of communication or miscommunication between a customer and a builder, and issues with the quality of the new build, both cited by 35% of respondents.
However, to support the market, 44% of brokers said discounted mortgage rates to reflect the energy efficiency of new builds were needed and 43% wanted to see more high-LTV products. Some 41% said there was a need for innovative developer incentives.
Looking to the future, 83% of brokers said they expected new builds to reshape the homeownership landscape in the next three years, but also said more support was needed.
This included more high-LTV options, as said by 85%, and more lender recognition of builder incentives, as cited by 83% of respondents.
Chris Curtis, MP for Milton Keynes said: “New Towns like Milton Keynes show what’s possible when we commit to building thriving, connected communities where people can live, work, and grow. I’m incredibly proud to represent a constituency that exemplifies these values and it’s really encouraging that brokers are seeing an 80% rise in interest in new towns from prospective buyers. Like these brokers, I believe new towns will dramatically change the homeownership landscape in the next three years. This is a promising direction for both brokers, and buyers alike.
“New towns are about more than just houses – they’re about creating a sense of belonging and building a shared future we can all take pride in.”
