New-build properties for first-time buyers

Permalink: New-build properties for first-time buyers
by Kay Murchie

According to Smartnewhomes.com, a property website for buyers looking for new-builds, first-time buyers are being offered special end-of-year incentives on new-build properties by developers who are keen to sell before Christmas.

The mixture of a cooling property market and the forthcoming financial year-end for developers in December has resulted in developers offering incentives to persuade first-time buyers to purchase properties.

David Bexon of Smartnewhomes said developers are acting quickly in order to sell properties. Special offers are available right now from Barratt Homes, George Wimpey and Redrow that will appeal to first -time buyers who are ready to move and can complete before the end of the year.

According to the Council of Mortgage Lenders, the average price of a new property in the UK is £257,036, while the average price of a first-time buyer property is £132,260. However, developer offers can put new-builds within affordable reach of first-time buyers.

The usual first-time buyer sweeteners include paying stamp duty or solicitors fees. However, developers are increasingly offering gifted deposits, whereby they add cash to match the buyer’s deposit.

A company called The Dandara group, based in the Isle of Man is offering a save-to-buy off-plan scheme for first-time buyers at its Spectrum development in Manchester city centre. Prospective homeowners can save up a 5% deposit in an 18 month period which will be paid in monthly installments to Dandara, who will then match the deposit.

A spokesperson for Dandara said this scheme is popular with first-time buyers. However, the company warns that buyers should always check the terms and conditions. Developers gain from these deals because they acquire more customers. Some deals look like you are getting something for free but buyers must check whether this is actually the case.

Other organisations, such as Miller Homes and George Wimpey offer incentives such as subsidising first-time buyers’ mortgages by as much as £600 a month for 2 years.

Smartnewhomes concluded by saying that first-time buyers could bag themselves a bargain. For example, an ex-show flat equipped with designer fittings could be bought for up to 15% less than its market value.

Those looking for these kinds of incentives should visit the following websites:

www.durkan.co.uk
www.millerhomes.co.uk
www.redrow.co.uk
www.barratthomes.co.uk
www.georgewimpey.co.uk