According to the SmartNewHomes.com monthly index, the average price of a new home is down 0.9% on last month. Prices have dropped for the third consecutive month, with the average new home price at £257,036, down 1.2% in the last three months.
In response to this, developers are increasing incentives and introducing a number of offers across developments to persuade buyers to continue to consider new homes in light of a slowing in the market, this is particularly beneficial to first time buyers – who will capitalise on the range of new incentives available.
The average price of a first-time buyer home is currently breaking the £150,000* barrier, £25,000 above the lowest stamp duty threshold, although, according to SmartNewHomes’ latest index, in many parts of the country, the average price of a new home exceeds this, ranging from £220,589 in the East Midlands to £358,180 in Greater London. In Wales the average price is £238,037. Thus, exposing many first time buyers to thousands of pounds in stamp duty costs.
David Bexon, Managing Director of SmartNewHomes.com said: “The recent price fall is not surprising considering the slowing market. With many financial year-ends for housebuilders taking place just before Christmas, the majority of developers will be acting quickly to sell units.
“This will come as welcome news to first time buyers who are the lifeblood of the housing market and play a vital role in feeding a continued demand – if this group continues to delay purchasing their first home it could prove detrimental to the economy on the whole. The latest developer incentives, promoted through SmartNewHomes.com are expected to aid first time buyers and reduce the affordability pressures currently preventing them getting onto the ladder.
“Miller Homes is currently offering to pay mortgage subsidies and Fairview offers a first time buyer solution to help people get onto the ladder. The ‘Move in Free’ offer includes 5% deposit paid, stamp duty paid, purchase legal fees paid and even cash back too, to offer help when it's needed most.
“There are also a range of other attractions including fitted kitchens and carpets. The current surge in developer incentives could play a vital role in encouraging first time buyers back into the market, easing their initial costs and making home ownership a reality for those struggling to afford the cost of buying their first home.”
See Also: Press Releases (371)
Date Published: 19 October 2007
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