As the stats say, there has been a gradual increase in the demand for new build homes across Wales since the previous year. Though these are available at higher prices than other types of properties, the demand has not been affected by the prices due to the advantages that come along. The choices available in the real estate sector of this region of the United Kingdom have also increased.
To meet the increasing demand for reasonably priced accommodation that is affordable for the working class in the city, the Welsh Government has taken various measures. The government is encouraging builders to put emphasis on the development of new properties to enhance the availability and affordability of housing.
Property Pricing Patterns since Last Year
According to the statistics, property prices in Wales experienced a trough during the last quarter of the year 2022. The reason behind this fall was high mortgage rates. Reduced transactions were a confirming factor for it. This trend is expected to continue throughout 2023, after which growth will return in the following year. In the year 2024, Wales is expected to have the greatest demand for new build homes as compared to the other parts of the UK. Property prices for new build homes and transaction activity did experience a fall, however, recovery is supposed to step-in in 2024.
Impact of Higher Mortgage Rates on Properties in Wales
As the average prices of properties in Wales lie below prices in the other parts of the UK, it has a positive influence as the effect of rising mortgages has not affected Wales property prices as much. Thus, the city still has a high demand.
Increase in Development of New Build Homes in Wales
In the South Wales region particularly, an increasing demand for customized new build homes has been registered. As reported by the leading house builders in the area, the first half of the current year has exhibited great demand for owned properties with most of the newly constructed houses and under-construction properties being already sold. Looking at this increased demand, builders are planning to construct more new houses.
Augmented Support from the Welsh Government
Looking at the increasing housing demand, the Welsh Government has set targets to deliver housing facilities to satisfy the need. The ‘Help to Buy’ scheme launched by the Welsh Government has been introduced especially for first-time buyers to assist them in acquiring new build homes. Under this scheme, an equity loan is provided to buyers entitled to it, thus, helping them secure a mortgage to make the deposit.
Secondly, the Welsh Government has come up with new improved planning policies that encourage builders in the area to keep new build homes construction a priority. As obligated by the government, the local authorities are held responsible to make sure that a certain percentage of these newly built properties lies in the affordable zone to meet the increasing need of local people.
The new build homes in Wales are expected to be developed using innovative construction techniques such as modular construction. This is certainly going to speed up the delivery to meet the increasing demand.
For aspiring buyers, here is some brief information about the most popular types of properties available in and around Wales:
Apartments are independent floors or flats with two to four bedrooms. Exclusive choices like studio apartments are also available that have got the buyers spoilt for choices.
Owning an independent house would mean possessing private property including both indoor and outdoor areas. Land rights are a part of the ownership. The owners can make the needed changes in the property whenever they wish to.
Paired houses or semi-detached properties are a more budgeted option for buyers. These have independent indoor and outdoor areas but share a common wall with another house.
Terraced houses are constructed in such a way that both side walls are shared with the next house in a row. These are attached on both sides to other houses to construct a residential street.
These houses are generally very small with one storey with low-lying roofs. However, more storeys can be constructed as per requirement or to boost the resale value. The front has a wide porch of traditional British style.
Home buyers are now preferring new build properties over pre-used ones as the trends indicate. New build homes bring along privacy and ownership rights that give peace of mind to the homeowners. Due to such high demand, the development of this type of property in Wales is taking place at a high level.