The new homes market is extremely strong heading into the winter months, reports Linden Homes, who experienced record numbers of visitors to developments during September and its best ever month for sales.
A total of 1711 potential customers visited Linden developments in September 2006, resulting in 146 sales in one month. This demonstrated a 24 per cent% increase in visitor numbers since September 2005 and a 21 per cent increase in sales.
First time buyers are increasingly choosing maintenance-free new build over second hand properties. With lenders increasing income multiples, the initial cash required to buy a first property is more of a barrier for many first time buyers than affordability, and the new build sector can often assist through deals and incentives such as stamp duty or deposit paid, which will reduce the initial cash outlay.
Investors too are extremely active in the city centre apartment market, despite the recent interest rate rise and the prospect of a further rise before the end of the year. House price growth hit 8% in September with the average home in the UK now costing £181,186*, which is continuing to drive investors into expanding their buy to let portfolios, even though borrowing may be about to become more expensive.
Philip Davies, chief executive of Linden Homes said:
"With house prices continuing to rise as a result of the shortage of new homes coming onto the market, we are struggling to find enough land available to meet customers' demand.
"Until the Government and local councils take significant steps to free up land for development, allowing housebuilders to really tackle the housing shortage, there will be continued high house price inflation resulting in a crisis for the first time buyer market, which is already struggling.
"While a further interest rate rise to 5% next month would undoubtedly have an effect on first time buyers, I would not expect to see a significant decrease in market activity."
