Hope in the Darkness: How UK Home Builders are Aiding Homebuyers in Troubled Times
According to The Guardian, UK housing prices dramatically plunged at the fastest rate since 2009 last month, sending further shockwaves through the country’s fragile economy, seeing house prices increase in Q1 by 0.8% increase.
Despite the government’s efforts to mitigate the effects of the recession, the impact has been far-reaching, leaving many homeowners and potential buyers uncertain about the best time to buy or sell.
UK Housing Market: Collapse Imminent or Not?
The latest numbers for January 2023 reveal that the average house price in the UK stands at £289,818. Property prices generally experienced a surprising 1.1% drop compared to the previous month of December. Still, compared to 2022, house prices have seen a staggering 6.3% increase in house price values.
While there is a small glimmer of hope for homebuyers in that monthly property values have dropped, the housing market still has a long way to go before it fully recovers, given the significantly higher yearly growth rate. Though this worrying trend is not ideal, it is no longer shocking, given the crisis we have been experiencing over the past year.
Following new data, the UK narrowly avoided a recession in the final quarter of 2022, as national output increased by 0.1%. This is in contrast to earlier predictions based on data from the Office of National Statistics that suggested that there would be no growth in GDP over the same period, predicting even more gloomy times.
However, the last days of March brought some encouraging updates and hope, although not expected, the news that UK house prices fell at the fastest annual rate since 2009 – a warm welcome to homebuyers and not so warm for homeowners.
For the prior, homebuyers will be reassured to know that despite the negative doom and gloom with the housing market, the new home builders are trying any way they can to help homebuyers grab a deal during the economic woes.
How are home developers helping the situation?
The recession has affected both ends: homebuyers have been stroked with high mortgage rates, and new home developers receive fewer enquiries and property requests.
This has led many homebuilders to formulate a response to entice homebuyers, offering promotions and schemes that would have been unthinkable even a few years ago. Many home builders have now introduced incentives and deals to help make it easier to buy (and sell) your home.
One of the many popular offers and incentives is called Deposit Unlock. This program is supported by many home builders, such as Bellway, Miller Homes, Persimmon Homes, and Keepmoat.
Deposit Unlock is a scheme that helps you buy a new or next home with just a 5% deposit. The scheme allows buyers to purchase properties up to £833,250 without location restrictions, *subject to the lender.
First Time & Home Mover Packages
Another offer exclusively available with Miller Homes is First Time and Home Mover Packages.
The First Time Package is a home buying support that allows customers to choose between having their 5% deposit paid or receiving up to £15,000 cashback upon moving. Meanwhile, the Home Mover Package helps homeowners sell their current homes by offering Part Exchange Plus, which guarantees a fair price and a buyer for their property.
£1,000 contribution for 12 months
Elan Homes currently offer a great deal on some of their new energy-efficient homes. You can save up to £12,000 by taking advantage of this offer, where they will pay up to £1,000 a month towards your mortgage for 12 months when you reserve your dream home.
Deposit Boost Scheme
The Barratt Homes Deposit Boost scheme introduces the 10% deposit by an additional 5% of the sale price, providing you with a total deposit of 15%. This scheme can be a great option for those looking to jump onto the property ladder or buy a second home with more equity and a better mortgage rate.
Most of these packages were introduced to help homebuyers in the recession, which shows the commitment of developers to help the situation. With the current changes in the market, it is reasonable to anticipate that property developers will offer more deals to support the buyers further.
The scheme offers participating mortgage lenders protection on their mortgages, enabling them to lend at 95% on new build housing—a similar scheme to First Time Buyers.