New research from mortgage adviser Alexander Hall suggests that new-build homes are no longer the preserve of first-time buyers, with a growing number of home movers and landlords now entering the market.

The firm’s latest internal data reveals that while first-time buyers still make up the majority of new-build purchasers — accounting for 59% of all transactions — other buyer types represent a substantial share. Home movers make up 22% of the market and buy-to-let investors 19%, reflecting broader confidence across the property spectrum.

Alexander Hall’s figures also show that over a quarter (27%) of new-build buyers are aged 40 or above, signalling that older purchasers are increasingly drawn to new developments.

Although studios and one-bedroom flats account for 41% of sales, two-bedroom homes are now the most popular choice, representing 45% of transactions, while three-bedroom properties make up 11%.

ADVANTAGES FOR ALL BUYER TYPES

For first-time buyers, new-builds provide a range of advantages, from chain-free transactions and modern build standards to the availability of schemes such as Deposit Unlock, Own New and products tailored to first-time buyer affordability.

Home movers are attracted by the convenience of move-in-ready properties, often with the chance to customise layouts when buying off-plan. Many new developments are located close to transport links and essential amenities, offering long-term energy savings through superior efficiency.

Landlords, meanwhile, are benefiting from the sector’s emphasis on energy performance and modern amenities. Properties with EPC ratings of A or B are expected to comply with forthcoming energy regulations for rental homes from 2030.

Features such as smart-home systems and communal workspaces are also helping landlords attract higher-quality tenants and command stronger rents, while warranties and low maintenance costs reduce financial risk.

IMPROVED NEW-BUILD MORTGAGE AFFORDABILITY

Recent adjustments to lender criteria have further enhanced affordability for new-build buyers. Some lenders are now offering lower rates for energy-efficient properties and factoring in reduced utility costs when assessing borrowing capacity.

Low-deposit options — typically from 5% — and the acceptance of developer incentives to offset legal or stamp duty costs have also supported affordability.

In addition, many lenders have extended mortgage offer validity for off-plan purchases to as long as nine to twelve months, while specialist lending for key workers and professionals offers higher income multiples and more flexible terms.

Stephanie Daley, director of partnerships at Alexander Hall, said: “With rising energy costs and stricter regulations on property standards, new-builds offer first-time buyers, homeowners and landlords a future-proof solution.

“Not only are they more energy-efficient, saving hundreds on bills each year, but they also come with developer incentives, modern amenities and fewer maintenance concerns. In today’s market, buying a new-build is not just a smart financial decision, it’s a lifestyle upgrade.

“We’ve also seen lenders introduce a range of new products and initiatives to help the nation’s homebuyers when it comes to securing a mortgage on a new-build property, further boosting appeal beyond existing incentives.

“The combination of low-deposit options, enhanced income multiples and specialist purchasing schemes is creating opportunities for buyers who may have thought a new-build was out of reach.”