Valuing new build properties was once a relatively straightforward exercise. The familiar factors applied – comparables, transport links, local amenities, schools – all the hallmarks of location and lifestyle.
Today, however, the picture is more complex. Larger developments in particular are presenting a more nuanced set of dynamics that are reshaping how we think about value and community. From the ever increasing number of developer incentives, the variety of affordable housing and government schemes, and elements like the ‘new build premium’, to energy efficient measures, there is much more to consider.
But a key factor behind this shift lies in the balance and purpose of affordable housing within new schemes. The long-term shortage of social housing in the UK has been well documented. According to the House of Commons Library, the proportion of homes for affordable or social rent in England has fallen from around 20% in 2000 to 16% in 2023. There is broad agreement that we need to build more affordable homes – but it’s equally important to understand what “affordable” means in practice.
While not defined in legislation, affordable housing is generally understood – through the National Planning Policy Framework – as homes for those whose needs are not met by the open market. This includes social rent (around half of local market rents), affordable rent (up to 80% of market levels), and intermediate rent options. It also covers low-cost home ownership routes such as shared ownership, the First Homes scheme, and rent-to-buy.
Between 2013 and 2021, Help to Buy provided a major boost for first-time buyers, supporting many into homes that might otherwise have been out of reach. With the end of that scheme, the composition of those purchasing and occupying affordable homes has begun to change. Developers have found it harder to sell some units, leading to the introduction of Homes England’s Section 106 Affordable Housing Clearing Service in late 2024 to help accelerate sales of uncontracted and unsold affordable homes across England.
As a result, there has been a gradual shift in the mix of households moving into these developments. Where once affordable units were often purchased by young families and first-time buyers, more are now being acquired by housing associations and rented to social tenants. For developers and lenders, this evolution isn’t about drawing social distinctions – it’s about understanding the factors that shape long-term market behaviour and valuation outcomes.
The reality is that tenure mix can influence perceptions of desirability and, by extension, value both positively and negatively. A large detached home overlooking open countryside might command a premium, while an identical home within the same development but positioned differently could be valued less. These variations reflect the subtle ways in which tenure diversity interacts with buyer confidence and demand. What we build, where and how matters.
Importantly, new developments continue to bring enormous benefits – new amenities, green spaces, schools, GP surgeries and transport links that enhance the lives of all residents and support the wider community. There is also the fact that new developments often regenerate disused or grey belt land that has been underutilised. The long-term gains from this investment can be significant and enduring.
For lenders and valuers, the key is awareness. Understanding the evolving mix of residents, the impact of policy changes, and local social and economic dynamics requires insight that goes beyond traditional data. Real-time, on-the-ground valuation knowledge is increasingly essential.
As the make-up of new housing developments continues to evolve, so too must the frameworks used to assess them. Risk profiles are not necessarily worsening – they are simply changing shape. Recognising that shift is the first step toward more informed, balanced, and sustainable lending decisions.
