Autumn 2009 is shaping up to be a busy period in the new homes market, says smartnewhomes.com, as a number of factors combine to make this the optimum time to buy a newbuild property.
Newbuild prices are down nearly 20% on their peak in July 2007, and are now comparable with the second hand market, despite the superior energy efficiency, design standard and other cost-saving benefits unique to buying new. However, new home prices are now beginning to show strong signs of stabilising, with the rate of annual decline decreasing rapidly since May*, as competition among buyers begins to intensify.
New stock is being made available in September and October as developers look to capitalise on a strong summer market. However, the supply shortage is set to hit heavily in 2010, restricting the time remaining to secure the best new home prices.
smartnewhomes.com is urging those who have been delaying a purchase, to get back into the market and take advantage of the low prices and attractive developer incentives while they are still available.
David Bexon, Managing Director of smartnewhomes.com, comments:
“With new home prices lower than they have been in years and a large number of developers set to release new stock following a surge in reservations this summer, autumn 2009 is shaping up to be one of the best ever periods to secure a new home.
“Over the last two months newbuild prices have started to stabilise, but unlike the re-sale market, where asking prices have increased rapidly, developers remain cautious and are unlikely to introduce any significant rises in the final quarter of the year.
“Developer incentives are as readily available as ever, and the autumn supply boost will create new options for buyers to take advantage of improving mortgage availability.
However, all industry voices continue to warn of an imminent stock shortfall, which will inevitably lead to strong positive price growth for new homes.”
Why buy new? - Incentives and energy efficiency
Buying newbuild not only gives homebuyers access to various incentives and deals, but also offers a range of benefits over re-sale properties that promote long-term cash savings. Buyers benefit from a home that is ready to move into, has a high quality finish and includes modern fittings and appliances throughout. One-in-two of the homebuyers questioned a recent SmartNewHomes.com survey, stated low maintenance and energy efficiency as their main reason for buying new.
Bexon adds:
“Buyers have their pick of developer deals from shared equity and stamp duty paid all the way through to part exchange and assisted saving schemes. For those concerned about any further short term price falls, a number of developers are even offering price protection schemes, typically guaranteeing the price buyers pay for up to three years.
“New homes are typically six times more energy efficient that older properties, with homebuyers benefitting from reduced carbon emissions and lower energy bills. However, the Home Builders Federation (HBF) has warned that new regulations in the Government’s Code for Sustainable Homes will see the cost of newbuild properties rise by an average of £7,000 as of April 2010. While any increase will pay for itself in the long-run, this may act as an additional incentive for autumn new home buyers.”
See Also: Press Releases (372), Why Buy New (1), Stamp Duty (25), Shared Equity (8), David Bexon (14), Energy Efficiency (4)
Date Published: 04 September 2009
Related News
