At many of our new homes developments, developers are taking additional steps to attract ever increasing levels of new applicants. For most, this means making qualifying units available through the Government’s help-to-buy scheme, providing access to support in raising the necessary deposit for a brand-new home. New homes (within London) up to a maximum of £600,000 that are due to be completed within six months can potentially come with as much as 40 per cent deposit, subject to terms. Other developers are considering more unusual ways of attracting purchasers such as offering furniture packs, car club membership, selling fees paid or holiday vouchers.
Newly built homes offer purchasers a whole host of additional benefits in addition to the incentives offered by developers. 10 year structural warranties, interior defects warranties, high efficiency heating and hot water systems, all helping to reduce a buyer’s household outgoings.
Purchasers often have the opportunity to personalise their new home by making selections on finishing specifications, dependent on the build-stage at the point of reserving – the earlier the reservation, the more options available.
We are currently experiencing demand from both domestic end-user purchasers, first-time buyers and up/down-sizing applicants, as well as a resurgence of overseas investor purchasers taking advantage of the historically low value of the pound. Purchasers with cash in dollars or other foreign currencies can buy UK property now for as much as 20 per cent less than 12 months ago, creating even higher levels of demand for the domestic purchaser to contend with.
Given the stretch on affordability in Central London, many developers are targeting higher volume locations further from the city, but which still offer buyers frequent, fast links into town.