First time buyers are set to benefit from slow house sales, with the average price of a new home this month down by 0.9%. Prices have dropped for the third consecutive month, with the average new home now costing £257,036, down 1.2% over the last three months.
In response, it appears developers are increasing incentives and introducing a number of offers to persuade buyers to consider new homes in the light of a slowing market. This is particularly beneficial to first time buyers who can capitalise on the range of new incentives on offer.
The average price of a first-time buyer home is breaking the £150,000 barrier currently, £25,000 above the lowest Stamp Duty threshold. Although, in many parts of the country, the average price of a new home exceeds this figure, ranging from £220,589 in the East Midlands to £358,180 in Greater London. The average price is £238,037 in Wales.
‘This will come as welcome news to first time buyers, the lifeblood of the housing market, and play a vital role in feeding continued demand. If this group continues delaying purchasing their first home, it could prove detrimental to the economy on the whole,’ says David Bexon, managing director of SmartNewHomes (www.smartnewhomes.com), who carried out the research.