New build makes the moving easy
“Where prices are right, specification is high, and funds are available, new houses are selling like hot cakes despite the current economic situation,” says Maria.
“I think it’s because buying a new home makes life so much easier. Obviously, there are the immediate advantages of going into a brand new property that is all clean and shiny – new paintwork, new kitchen, new bathrooms. If you were in at the start of the development, you may even have had the opportunity to choose your decoration, floor coverings and various fittings.
“Outside, your garden will either be nicely landscaped, or waiting for your choice of planting – you don’t have to wade through a jungle or wait to see what perennials may or may not pop up in your designated veggie plot or lawn. With luck, you will even have allocated parking to alleviate the nightly hunt for a parking space after a long day at work.
“But perhaps even more importantly, you won’t have the numerous problems associated with moving to an older property. At a new development, there is no onward chain, there is a chance the developer of your new home will take your old one in part exchange thus relieving you of any selling hassles, and you are likely to have help finding funding. Also, mortgage lenders always look more kindly on new properties than old ones where a survey may bring all sorts of problems out of the woodwork –sometimes literally.”
Maria continues: “Locally all the sites are buzzing, and this shows no sign of slowing down. For example at Mersea Homes’ new development at Tubswick, two out of the nine proposed homes have been sold off plan barely before we have begun our advertising campaign. Our main problem at present is lack of supply.”
She reports that several of the UK’s big developers have large-scale developments in the pipeline in the Colchester area, which should get underway in 2013.”
The Government’s NewBuy scheme indemnifying lenders providing 95% mortgages on properties under £500,000 has provided a welcome boost for the big-name development companies who have been able to join by putting 3.5% of profits into a pot against future repayment defaults. Hopefully, the scheme will continue to provide welcome help to growing families who need more space but don’t have a huge amount of capital to invest, and prove an incentive to movers across the board.”
Maria Montgomery, Associate Partner (Land and New Homes team)