How will the budget affect new home builders?
The key challenges for new home builders are finding buyers, keeping buyers and securing completions. Quick Move Properties looks into how the budget could aid these challenges and how new home builders can increase completion rates.In response to the budget, Donna Houguez, Market Analyst at Quick Move Properties, comments: “If all goes to plan, the reiteration of the Government’s pledge to assist first-time buyers purchasing new build homes should increase sales for new home builders. If confidence can be inspired in first-time buyers and if the Government follows through with its promises of finance, new home builders will receive support and enjoy the benefits of having more ‘proceedable’ buyers.
Builders are required to put up some of the money for some of the schemes, such as First Buy, but gaining more buyers able to complete on sales should outweigh the outlay (the Government and the homebuilder usually provide 15-20% of the deposit on the buyer’s behalf for properties worth up to £280,000). When the buyer sells the property in the future, the homebuilder should regain their investment plus extra funds due to an increased property value.”
The sign of a healthy economy is often a strong and flowing housing sector, so hopes were that Government plans would focus in part on stoking the property market. Despite the need for a dedication to a property market revival and some efforts to help such as the continuation of the first-time buyer schemes, Government spending has only been increased by 0.4% since 2010. 3.07% of Government spending in 2012-2013 has been allocated to housing and environment compared to 3.03% in 2010-2011; it seems only a small increase considering the amount of effort needed to aid market recovery.
How to increase completion rates…
Using a part exchange company such as Quick Move Properties gives new home builders the opportunity not only to increase the volume of completions but also to improve profit margins and reduce the timescales for each individual sale.
Key benefits:
- Increased sales, as part exchange turns potential customers into proceedable buyers. Those who had been unable to sell their existing properties would then be able to follow through to completion on their new home.
- Guaranteed completions, because the uncertainty of mortgages and chains is avoided.
- Zero risk and no responsibility for funds or the onward sale of the customers’ existing properties.
- Less hassle and more time to spend working on their own sales – Quick Move Properties manage the whole purchase process!
Quick Move Properties is the UK’s largest property part exchange company, allowing new home builders to offer risk-free, hassle-free and guaranteed part exchange on their customers’ existing homes as an incentive for them to purchase onward. The most professional and experienced company in the industry, Quick Move Properties is renowned for its expert part exchange service.
Company Information
Quick Move Properties
The part exchange company
Tel: 01793 840907
www.quickmoveproperties.co.uk
px@quickmoveproperties.co.uk
15 Interface Business Park
Bincknoll Lane
Royal Wootton Bassett
Swindon
SN5 8SY
