For this edition of Faces of LRG, we sit down with Tim Foreman, Managing Director of Land & New Homes, and Jason Farrimond, Director of Land & New Homes, to discuss the changing face of the new homes market, what’s driving buyer behavior and where the greatest opportunities lie.
What are the biggest shifts you’ve seen in the new homes market over the past five years?
The end of the government’s Help to Buy scheme has been one of the most significant changes, placing greater pressure on affordability for first-time buyers. Post-pandemic also reshaped he sector: a shortage of skilled workers, delays in materials, and rising construction costs all slowed delivery.
At the same time, developers have had to contend with new policies, from biodiversity net gain to the introduction of eco-credentials such as electric vehicle chargers and air-source heat pumps. Buyer expectations have also evolved since COVID – flexible space for home working, access to open space and outdoor areas, even in apartments, are now seen as essentials rather than luxuries.
In your view, what’s currently driving buyer behavior in the new build space?
Convenience and sustainability are at the heart of decision making. Buyers are looking for low-maintenance homes that reduce running costs, incorporate modern technology and are environmentally conscious. Strong transport links, good schools and nearby green space are also key drivers. Developer incentives such as contributions towards deposits or stamp duty continue to play an important role in motivating buyers.
How are developers adapting to meet post-pandemic expectations?
Developers have had to reassess specifications, with rising building costs and material shortages prompting difficult choices about where savings can be made. Homes are increasingly being redesigned to accommodate home working, while eco credentials and sustainability have become central to marketing strategies. Incentives are also being used more frequently to entice buyers away from the second-hand market.
Can you talk about a recent project where LRG’s involvement made a measurable difference?
LRG is often called in when a development isn’t hitting its sales targets. By leveraging an extensive applicant database, local market presence and proven marketing activities, results can quickly improve.
On many projects, however, LRG’s value is added right from the outset. From selling the land, working with Boyer on planning, and advising on product mix and specification, through to valuations and ultimately selling the homes, the integrated approach ensures developers are supported at every stage. This joined-up involvement consistently helps schemes to achieve, and often exceed, expectations.
What are the biggest challenges developers are facing in today’s planning and delivery landscape?
The planning system remains one of the greatest obstacles, often taking far too long and involving multiple hurdles. Requirements such as biodiversity net gain, SANG provision, section 106 agreements and CIL contributions add layers of complexity. Combined with rising labour and material costs, these pressures and squeezing land values. If landowners no longer see sales as viable, the process risks stalling before it even begins.
Where do you see the greatest opportunity for growth or innovation in the new build sector?
Sustainability and green credentials are fundamental to the sector’s future, particularly in larger, mixed tenure communities that include affordable housing, build-to-rent, open spaces and community facilities. At the same time, there is an opportunity for high-quality developers to deliver smaller, more luxurious schemes – an area that has been underserved in recent years.
What trends do you think will define the new homes sector over the next 3-5 years?
Sustainability, community designed and mixed-tenure developments will shape the future. But to achieve housing targets, government support will be essential. Reforming the planning system, reducing interest rates and introducing a new scheme akin to Help to Buy would provide the boost needed to meet demand.
One thing is clear: despite the challenges, the new homes market continues to offer opportunity for developers ready to embrace sustainability, adapt to buyer needs and partner with right experts.
