The past year has been challenging for the UK housing and mortgage market, with political and economic uncertainties, alongside geopolitical turmoil, creating significant hurdles for both buyers and lenders.
Shifting economic conditions and policy instability have adversely affected affordability, buyer confidence, and overall market stability, factors which have also impacted housebuilders and the new build sector.
Focusing on new build, in our most recent webinar session, the feasibility of the new government’s ambitious housing targets was a major topic of discussion. As the housebuilding sector prepares for a transformative 2025, panel members and property professionals in the audience expressed considerable scepticism about the government’s aim to deliver 1.5 million new homes within the current parliamentary term. A live poll revealed that 95% of respondents viewed the target as unrealistic, though a small 5% remained optimistic about its potential achievement.
In addition to doubts around this housing target, the webinar also explored the evolving priorities of homebuyers, with a strong focus on energy efficiency. In a further poll, an overwhelming 85% of attendees said that energy efficiency would be either “very important” (20%) or “somewhat important” (65%) in future homebuying decisions.
The fact that only 5% felt energy efficiency was “not important” speaks volumes about the market’s shift toward sustainability. This reflects a broader trend driven by rising energy costs and growing awareness of climate change, suggesting that eco-friendly homes will become increasingly desirable in the short, medium and longer term.
However, opinions were more divided on whether the government should introduce a stamp duty holiday specifically for new builds. The poll revealed a near-even split, with 47% in favour and 53% opposed. This division highlights the complexity of using fiscal measures to stimulate the market.
While a stamp duty holiday could provide a short-term boost for new build sales, some industry professionals question its long-term effectiveness, emphasising the need for more sustainable strategies to address housing demand.
While diverse in nature, these findings highlight a shared need for a coordinated effort across the housing sector. Significant structural changes and robust support mechanisms are essential to accelerate homebuilding in the UK, with planning reforms being a critical factor in meeting these ambitious targets.
The challenges facing the housing market are complex, and there are no straightforward solutions. To better serve both younger and older generations, stakeholders must embrace collaboration and develop effective strategies without delay. For mortgage intermediaries, this means staying well-informed about shifts in the UK construction industry and new build housing sectors, which are currently influenced by economic pressures and evolving policies.
Although intermediaries don’t need to become construction experts, understanding the complexities of new build properties can be highly beneficial. Offering clients insights into these details can make a significant impact, helping them with immediate purchases and preparing them for long-term success when they eventually sell.
Despite the urgent need for faster housebuilding, some positive trends are emerging. The growing emphasis on energy efficiency, for instance, is expected to shape future housing demand.
Companies like ours are committed to advancing new build surveying practices. By collaborating with industry partners, we aim to support the delivery of sustainable and innovative housing solutions that will strengthen the market for years to come. This kind of aligned approach across the sector is essential for addressing complex challenges and providing high-quality, affordable housing throughout the UK—a goal that would benefit all areas of the industry.
Morné Jacobs is director of new build, Countrywide Surveying Services
