How New Home Buildings help the whole Property Market
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The government has pledged to build 300,000 new homes a year during the course of this parliament.
While the pace of construction hasn’t yet reached that level, there certainly is plenty of activity in the new homes sector here in Norfolk.
This has led to several clients asking recently whether all of these new homes will affect the market for those selling more established ones. Some have expressed concern that the character of some towns and villages is being altered by this building, while others are worried that buyers may be attracted by new homes with their energy efficiency and their warranties, at the expense of more established properties.
These are legitimate concerns, but there is little evidence that the provision of so many new homes is having any significant impact on the ‘second-hand’ homes market – in fact, there is some indication that it may indeed be helping the market as a whole.
The overall shortage of homes in the UK is well-documented, and it is especially severe in rural areas such as Norfolk, where many people struggle to find somewhere to live in the community in which they grew up. Increasing the total supply of homes will help redress this balance.
But there is a less obvious but equally important positive consequence: in communities which have been struggling to support amenities such as a shop, pub or small school, the influx of new people which expanding the housing supply can bring about can help these crucial local facilities survive and thrive. In Aylsham, for example, the expansion of the town has supported a thriving new range of shops, cafes and eateries in recent years.
That is good news for everyone in the community, and will attract buyers whether they want a new home or an established one.
It’s undeniable that for some buyers, the attractions of a relatively maintenance-free, energy-efficient new home are key. But for just as many, a well-established home with the character that can only come from being lived in – and with all of the inevitable teething problems of a new house already ironed out – has a greater appeal. Plenty of people look at new homes on small plots crammed cheek by jowl and decide that is not for them.
The truth is that Norfolk needs more homes, and building new ones prevents stagnation of the market, and gives buyers a greater choice. But those selling established homes shouldn’t worry that new homes being built nearby will decrease the appeal of their home for prospective buyers. If new-builds help sustain the local community, the chances are they will enhance the saleability of every home in the locality.
Kate Gillard is senior residential property valuer at Arnolds Keys’ County Hub in Aylsham.
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