New build developers have had plenty to shout about in the last few weeks with a run of better than expected results from some of the top ten housebuilders in the country. This month however, the nation is being invited to share in the good news about buying a brand new home with New Homes Month.
Created by the New Homes Marketing Board, New Homes Month is a campaign to tell buyers about the benefits of buying a new home over an older, second hand property. The housing minister, Grant Shapps, has given his backing to the four week event, going some way to acknowledging the UK’s new home shortage as well as the increased levels of investment and improved job opportunities that go hand-in-hand with new developments.
For their part, developers have been busy highlighting the many benefits offered to buyers of new homes. As well as being competitively priced, meaning buyers make an initial upfront saving, new homes also promise reduced running costs because of their increased energy efficiency.
smartnewhomes.com is the ideal starting place for buyers looking for a new home, having won the Daily Mail’s Best Property Portal Award for a second year running in 2009. The website lists 85% of new homes for sale in the UK as well as alerting users to the vast range of developer deals and incentives currently on offer. You can narrow your search for a new home by proximity to schools, the latest developments to be added to the website and the most popular, while advice is also available for investors, retirees and first time buyers.
New build homes in particular provide a great opportunity for first time buyers looking to get on the property ladder. While the Home Builders Federation has found that the average age of a first time buyer, is creeping towards 37, new homes, with their wide range of deals and incentives, could provide a fast track route into home ownership for those not receiving help from relatives.
Now is proving to be an especially good time for first buyers to take the plunge, with a growing number of lenders starting to reintroduce high loan to value mortgage products at competitive rates. Bovis Homes has already teamed up with Barclays to offer first time buyers at its developments a competitive 90 percent LTV mortgage option, while HSBC also recently announced a similar offering.
This means that more first time buyers will be able to join the many others who have been quick to take advantage of the government’s current Stamp Duty saving as well as record low interest rates. The current affordability of mortgages for first time buyers was highlighted by Halifax who found that first time buyers are spending on average only 28 percent of their monthly income on mortgage repayments – down on 50 percent in June 2007.
There’s no denying that for many first time buyers, getting together a deposit to put down on a first home remains tough with many friends and relatives being forced to club together so that they can afford to buy. Understanding this, Linden Homes’ Family Bond scheme, for example, is designed for parents of first time buyers who are able and willing to pay up to a 25 percent deposit. They will then get a 10.25 percent annual return on their investment while the first time buyer benefits from a smaller mortgage and lower interest rates.
The news that 50 percent of developments previously thought to be under threat will now be saved through Kickstart funding means that 4,800 new homes will now be available to buy – going some way to meeting the growing demand for affordable homes. Rhondda Cynon Taff County Borough Council has also earmarked eight sites that it considers crucial to meeting the demand for new homes in the area. Plans for the redevelopment of Llanilid open cast coal site near Llanharan will create 1,850 new homes, shops, and range of community facilities, which will benefit the area’s existing community and change the landscape for the better.
This comes after a number of housebuilders, including Redrow and Galliford Try, reported a return to profit, quietly optimistic about the future. It certainly looks like New Homes Month will draw to a close on October 3rd with some good news stories under its belt.
See Also: Property News (6701), New Homes Month (8), New Homes Marketing Board (2), Galliford Try (4), Redrow Homes (115), Big Smart Blog (11), Press Releases (371), New Homes Market (28), Stamp Duty (25), Kickstart (12)
Date Published: 30 September 2010
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