Off-plan home sales are forecast to rocket

The National Association of Property Buyers predicts that record numbers of homes sold will be “off-plan” by the end of the year.

According to data 37 per cent of new homes sold in England and Wales were sold off-plan last year, up from 35 per cent in 2020 but down from the peak of 47 per cent in 2017.

Jonathan Rolande, from the National Association of Property Buyers, expects the numbers to rise sharply in upcoming weeks.

He said: “The lockdown blip has seen the numbers of homes sold off-plan reduce but we expect these to rise quickly to match and overtake the previous high of 47 per cent in 2017.

“City centre apartments will lead the increase with increasing numbers sold to owner-occupiers rather than investors. Buyers love the certainty of fixing a price on a home at today’s value, no matter what the market does in the future during construction.”

Mr Rolande, the director of House Buy Fast, added: “Older buyers often take advantage of part exchanging the family home for a brand new apartment or smaller, more manageable house. The part exchange process gives guarantees unavailable in the standard market eliminating viewings and fall throughs.

“But buyers shouldn’t forget that new builds are premium products and are priced accordingly. There is often better value to be had in the second hand market.

“Buying off-plan is a decision made out of a mix of personal preference and necessity and very often people commit early because they simply cannot find what they want elsewhere thanks to the incredible shortage of property coming to the market.”

The Cotswolds had more offplan sales than anywhere else with 86 per cent of new homes bought off-plan there last year. In the past London has dominated the off plan sales market.