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Higher interest rates spark cooling in new-build market

An online property platform says it expects May’s sales figures for new build searches to be slightly below expectations.

This is as investors and owner occupiers feel the impact of higher interest rates and the growing cost of living crisis.

New data from the Whathouse platform shows that searches in April slowed by seven per cent, and across all new home types including Luxury, Help to Buy, and Retirement.


“Many buyers may hit pause on new home ownership until affordability is more certain” it says in a statement.

The platform’s managing director, Daniel Hill, says: “The first three months of 2022 represented a seemingly limitless surge in … interest in new build homes, as people took action to achieve their long-planned lifestyle goals once final pandemic restrictions were lifted.  

“Now, as the cost-of-living crisis bites, the brakes are starting to go on.”

And he adds: “The reality of housing affordability and continued economic uncertainty means this slowing looks set to carry on through May and for the remainder of the summer.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    This is not the time to be buying

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    Time to sell if you haven’t missed the boat.
    First time buyers keep saving when it crashes your turn will come, the one’s that bought already are stuck
    Everything Government is doing will make it happen.

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    Whether now is a good time to buy depends on so many factors.
    Can you find anything you want to buy?
    Is it to live in or let?
    Will a lender lend to YOU?
    Will a valuer agree with the price you have offered?
    How long can you fix the mortgage rate for?
    Are you likely to want to sell in the next 10 years?
    Does the idea of negative equity worry you?

    One thing for sure is that if prices drop lending criteria will get far, far more difficult and lenders will want higher deposits. If interest rates keep on rising it would have been far cheaper to buy now on a 5, 7 or 10 year fix than wait for house prices to drop and get your mortgage when rates are higher.


    I would not want to be borrowing large amounts of money now.


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