An estate agency with a major new homes department claims new build sales are proving more resilient than the mainstream market.
Leaders Romans Group says its Q2 sales statistics reveal transitions on over 150 plots, which was comparable with Q2 2022. The division also added 21 new developments to the pipeline which it is anticipated will launch later this year.
LRG’s associate director of land and new homes, Jason Farrimond, says: “Developers selling new homes have a variety of tools available to them for incentivising sales. For example, our clients are offering to assist with moving costs, contributing towards stamp duty and mortgage payments, and also providing property inclusions such as carpets, free specification upgrades and landscaping.
“With an increased likelihood of chains falling through, developers’ ability to offer part exchange as a means of completing chains is more valuable in today’s market than ever. Our Corporate Sales division, which specialises in the resale of part exchange properties, saw substantially increased demand, with the number of valuations in July up 160 per cent year-on-year.
“It is also worth noting that the number of cancelled sales is 20 per cent lower than 2022: the current market is one for the serious buyer/seller (the ‘need to move’ rather than the ‘want to move’) and as such there is more certainty when embarking on a property transaction.”
This bullishness comes in the wake of a series of difficult results from house builders listed on the London Stock Exchange.
Last week alone Persimmon, one of the UK’s largest housebuilders, revealed that in the first half of the year it completed only 4,249 new homes, down from 6,652 in the prior half year; and underlying profits fell 65 per cent.
Another developer – Bellway – admitted that its private reservation rate had fallen 36 per cent during the year.
LRG’s Farrimond admits that there are some obstacles for buyers, particularly the ending of the Help To Buy scheme at the end of last year.
He says: “Help to Buy accounted for almost 60 per cent of our new homes sales. We have recently been involved in a pilot of the First Homes scheme which is an alternative option for first time buyers.
“My initial view of the scheme however, is that there seems to be quite a bit of the unknown from local authorities about the logistics of the scheme. It has the potential to be a great option but without the significant PR and marketing that accompanied Help to Buy, it could take some time before buyers are fully aware of the scheme its logistics of the scheme ironed out.”