The ‘sustainable housing development’ study: Where in the UK is consumer demand highest for new build houses, and what do buyers want in a home?

This research was compiled by food waste disposer and hot water tap manufacturers Insinkerator.


With the need for commuting dramatically reduced and working remotely set to remain the norm, the Covid-19 pandemic has driven many people to leave large cities like London. So which towns and cities are seeing the biggest consumer demand for new build flats, apartments and houses?


We’ve used online search data to measure demand for new homes in the 50 most populated towns & cities in the UK, revealing which ones can be considered the biggest ‘growth towns’ for new builds!


How we’ve categorised the data -

  • Consumer demand - how much demand is there relative to the location's current population
  • Search rate - linked to consumer demand, this is how many online searches there are annually per 100,000 residents
  • Market demand - this is how much total volume of searches in each location, discounting the location’s population. This shows us the UK locations where the largest markets are for new build housing
  • Population - measured Primary Urban Areas (PUA’s) with the latest data available annual data (2019), as sourced from the Centre for Cities and ONS


The results proved to be surprising! Northampton came out on top, with the highest consumer demand for new build homes in the UK. The East Midlands town has a search rate of 2,564 per 100,000 residents per year. With great connections to London, cities in the Midlands, and also access to the countryside, the town has grown in population by 15% since the turn of the century - from 194,000 to 225,000 currently. Northampton ranked 11th in the UK for overall market demand.


The second highest search rate was in Edinburgh (2,171 searches per year). The Scottish capital’s population has grown by 17% since the year 2000, and is currently 525,000. Third highest consumer demand ranking for ‘new build homes’ is Aberdeen, with 1,994 searches per year. The most northerly UK city on the list, the population has had a slower growth since the year 2000 of 7%.

Top Findings:

The data revealed surprising results, including:

  • Northern cities dominate the list of the highest demand for new housing, with 9 out of the top 10 located north of Birmingham
  • Demand for new build houses in Northampton is 25x higher than in London, relative to population size. This may be because of its proximity to the capital for part-time commuters
  • There’s a lack of consumer demand in London which ranks only 48th out of 50 UK cities for consumer demand for new build houses – an average of just 101 searches annually per 100,000 residents
  • The Scottish cities of Edinburgh and Aberdeen both feature in the top 5 for consumer demand
  • Three Scottish cities make the top 10 for ‘new build home’ consumer demand - Glasgow ranks 7th in the UK
  • The East Midlands features twice in the UK’s top 5 with Northampton 1st and Leicester 5th


 




Where are the largest markets for new build houses?


When population size is discounted from rankings, the locations with the greatest market demand for new build homes is dominated by the biggest cities. However, London sits lower in this ranking than might be expected, despite having an urban population over four times bigger than the next largest city (Birmingham):

  • London still only ranks 6th for market demand for new build homes
  • Manchester tops the rankings for highest total volume of searches for new build homes, with 22,320 searches annually
  • Birmingham is 2nd, with 15,840 searches annually. Glasgow comes 3rd, with 15,240 searches annually, followed by Edinburgh with 11,400 and Leeds with 10,800
  • Once again, the north dominates sheer volume of online searches for ‘new build...’ search terms - 9 out of the top 10 are north of Birmingham
  • Removing the cities in the Midlands from this equation highlights the powerhouses further north - 6 of the top 10 are north of the Peak District


What are consumers looking for in a new build home? Consumer survey data


In order to find out what people are actually looking for in a new build home, we carried out a study of 270 households around the UK to find out whether they were looking to buy a new home in the near future, what prospective buyers look for and whether there is any confidence in new build houses in the UK.

We found that 47% of current homeowners are looking to move within the next 3 years, and 58% of renters expect to purchase a house in the next 3 years.


Priorities when buying a home


What we expect and need from our homes has changed drastically during the last 10 years. With a focus on sustainability, green living and wellbeing – plus the need for comfortable home working spaces – the shift has only just begun.

Our study found that the majority (67%) of potential buyers put the highest priority on nearby green space, either directly around the home or accessible close by. In addition, environmental concerns are a priority for many:

  • 61% prioritise energy efficiency for heating and fixtures
  • 44% want their home to be fitted for environmentally friendly living; such as food waste disposal, recycling, and renewable energy systems
  • 33% want their home to be sustainably built


What are experienced buyers prioritising in a new home?

There is a clear difference between what experienced buyers and first-time buyers look for in their new home. People who had bought a home before prioritised:

  • 67% - Energy efficiency for heating and fixtures was prioritised most by experienced home buyers 
  • 65% - Surrounding green space, such as parkland or walking countryside access 
  • 41% - A home fitted for environmentally friendly living, such as food waste disposal, recycling, and renewable energy systems


What are first time buyers prioritising in a new home?

On the other hand, first-time home buyers are primarily interested in:

  • 68% - Surrounding green space (directly around the house; local parkland or walking access to countryside)
  • 57% - Energy efficiency for heating and fixtures
  • 55% - Commuter links to a major urban centre


Those living in urban areas were found to be more interested in access to major urban centres when searching for a new home (64%) and are also least likely to want space for an office in their new home (22%). In addition, they are least likely to be interested in a sustainable build (28%) and only 39% want their home to be fitted with environmentally friendly living features.


However, most of those living in rural and suburban areas (68%) prioritise access to green space when looking for a new home, and 46% are interested in environmentally friendly features such as food waste disposal, recycling, and renewable energy systems being fitted.


Consumer confidence in the UK’s new build homes:


Our findings show that more needs to be done to make new build homes in the UK a good long-term investment. 36% of the prospective buyers we surveyed are not confident in the lasting value of a new build, and only 24% said they would be confident in the overall (compared to 29% who said they would not be confident in the quality of construction).


With just under 1 in 3 respondents feeling that more needs to be done to keep the buyer in mind when building a property, expectations of new builds are that they should be finished to a high standard - 32% expect the latest modern fixtures included in the home purchase, while 30% expect effective modern and environmentally friendly waste disposal solutions installed.


Where in the UK has most consumer confidence in new build housing?


“I would be confident of its overall quality”

Consumer trust in new build housing is shown to be relatively low in Greater London (18%), while the East Midlands (38%), North West (35%) and South West (30%) have the highest levels of trust among prospective buyers.


“I would expect environmentally friendly waste disposal solutions installed”

The highest emphasis on environmentally friendly features, like modern waste disposal systems, is in Scotland (55%), followed by the South West (50%) and the East Midlands (46%).


“I would be confident that they represent value for money”

The area where prospective buyers expect to find the best value for money is Scotland (36%), followed by the North West (35%) and Yorkshire & Humber (27%). The East Midlands, despite having the highest demand per population for new build homes, is an area where confidence in value for money is notably low, at just 15%. 


How the data was collected:

Online search data -

New home data pulled from Google search data (ahrefs) -- correct as of 9th April 2021

Search keyword data pulled for terms:

  • ‘New build homes [location]’
  • ‘New build flats [location]’
  • ‘New build apartments [location]’
  • ‘New build houses [location]’
  • ‘New build house [location]’

Population data -

Population data of UK towns & cities (based on Primary Urban Area) 2019, sourced from: https://www.centreforcities.org/data-tool/#graph=map&city=show-all -- this data is in turn taken from ONS, Population Estimates

Details of the population figures - “All cities in this tool, and across Centre for Cities work, are measured by their Primary Urban Area. This means that not all cities will be measured on a single local authority, but based on the whole built-up area, reflecting the functioning economy of that city. A full breakdown of each PUA can be found here.”


Please enable JavaScript to use this website.