More than three quarters (79%) of brokers are feeling optimistic about how the new build housing market will perform in 2022, new research published by TMA Club has indicated.

Despite this optimism, however, two in five (40%) brokers believe a lack of housing supply is the biggest challenge facing the new build sector.

Shortages in material and labour have seen the new build sector struggle during the pandemic, putting the government’s target of building 300,000 new homes a year into serious jeopardy.

As well as limited housing supply, TMA Club’s findings showed that one in five (22%) brokers believe a lack of high LTV lending is the biggest challenge they face when helping clients looking to buy a new home. A further 15% think that the limited availability of appropriate criteria from lenders is the greatest concern.

The research, based on a study among 145 mortgage industry delegates, also suggested that the majority of enquiries (62%) brokers receive are coming from first-time buyers.

With the Help to Buy scheme coming to an end in March 2023, and many developers forward-selling as far as 12 months, TMA Club warned that without a suitable replacement, first-time buyers will struggle to get onto the housing ladder.

TMA Club is part of the LSL Property Services and the group’s director of new homes financial services, Craig Hall, said that the coming year promises to be one of “significant change” for the new build sector.

“With many developers forward selling their properties, it is likely that we will see a post-Help to Buy market come into fruition from Q2 2022,” said Hall.

“As a result, we may well see a growing importance placed on Shared Ownership for homebuyers, while the government’s expanded First Home Scheme may also begin to play an important role.

“We hope to see further lender innovation along with the emergence of new private schemes over the coming months to ensure that first-time buyers and others in the new build sector continue to get the support they need.”

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