New build homes are often at the forefront of market downturns and new data suggests new builds are already seeing price reductions of 14 per cent.
Property consultancy Unlatch, which monitors the new build market, says the average new-build home in Britain sells for £394,699, which in price terms is a 36 per cent premium over the wider national average house price.
However, based on the average asking price for new-build homes currently available for sale, Unlatch’s research reveals that new-builds actually sell for 14 per cent (or £63,753) less than their original asking price.
In London, the difference between new-build asking prices and sale prices is even bigger, down 20 per cent.
In both the South West and North East, new-builds sell for 13 per cent less than their asking price and, in Scotland, the saving for those who haggle is 12 per cent.
In Wales, the East Midlands, and East of England, the potential saving is smaller bat just two per cent.
Unlatch spokesperson Lee Martin says: “Incentives such as money towards your stamp duty, legal fees, furniture packs and even mortgage and/or service charge fees are popular incentives developers often offer during the lifespan of the scheme. It should be noted that these incentives are offered either at the start or end of a development, or throughout if the sales are slow in order to kick start the momentum, so everyone wins.
“So, if you’re in the market for a new-build, always be prepared to negotiate with the developer. The chances are that their asking prices are set at a level they are happy to reduce slightly for a quality buyer in a proceedable position who is bold enough to ask for a discount.”
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I can remember when buying 'off plan' meant a profit for the buyer before they even completed their purchase. Now new build house prices have been hugely inflated by schemes like Help To Buy where FTB-ers had to buy new, resulting in prise rises & huge profits for Property Developers. Most are built to the lowest standard possible - building regs - and drop in value over the next year or two.
Another Govt policy with unintended consequences.
A developer property is like a new car, sell it a year down the road and you'll be looking at a big lose
It’s not the price which puts me off buying them, it’s the “Estate Rent “ 😬. To be liable to pay uncapped charges for land I did not own, nor had any control who used it…. No thanks.
Most of the new housing is miles away from amenities or transport links, has uncontrolled estate charges and district heating schemes that lock owners to a specific energy provider for decades. Some of the house designs are nice but the lack of garaging and parking is a problem especially as the locations are so far from amenities.
Exactly!
How "green" are isolated new build estates miles from any facilities, where the car is needed for everything?
Compare this to long lasting traditional homes in the heart of the community, where everything is within walking distance, or at least was before the death of the High Street, aided and abetted by the favourable tax treatment for online traders and punitive business rates levied on traditional shops, pubs etc.
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