The new build sector offers valuable help not available in the second-hand market. Including assistance with deposits, moving costs, part-exchange, shared equity and rent to buy schemes, this can make the difference between moving or not in the current climate.
Whilst the BoE interest rate remains at a continuing record low, average Scottish rents have reached their highest levels since 2008 (Citylets, July 2011) so why rent when you can buy?
Although this might not be the time to make a quick return, the housing market is cyclical and new homes are a sound investment in the medium to long-term.
Kelly Brown and James Ketchen took advantage of a 100% mortgage deal from their builder to buy their first property. |
The difficulties faced by the housing market over the last three years have resulted in lower prices which have improved affordability, directly favouring those in a position to buy. In fact, an affordability review by Bank of Scotland found that the five most affordable areas to own a home in the UK are in Scotland with typical mortgage payments for a new borrower amounting to 22% of average disposable income - down from 38% in 2007.
People continue to need comfortable, reliable places to live - new homes are guaranteed, sustainable and built to the highest standards, making them much more energy efficient than their Victorian equivalent and offering potential savings of £500 on annual fuel costs. In fact, carbon emissions of the average Scottish house have been reduced by over 70% from 1990 levels.
It costs an average of £22,000 to bring an old house up to the standard specification of a new home which, in contrast, offers a bright, fresh, untouched property with fully-fitted, up-to-date kitchens and bathrooms, plus a choice of certain finishes and coverings, including tiling, flooring etc.
Many new homes are now built to order - providing additional time, flexibility and increased confidence for those needing to sell existing properties.
More First Time Buyers took out mortgages in June 2011 than at any point in the previous 12 months.
Mortgage lending in Scotland outstripped the rest of the UK for the second quarter of 2011, with a 36% rise in number and 42% increase in value from the first quarter in comparison to 26% and 25% respectively for the UK as a whole.
Bank of Scotland's First Time Buyer Review reports that the average price paid by FTBs is now more affordable for those on average earnings in 77% of all local authority districts.
The number of new homes built in Scotland has halved since 2007, meaning that there will be an even greater housing shortage as the market recovers. As new homes will therefore continue to be in high demand, this consequent lack of supply could conceivably drive significant pent-up demand - perversely fuelling conditions for a return to double digit house price inflation in the future.
Scottish Government research confirms the home ownership aspirations of Scots with a 20% increase as 72% of people reported a preference for home ownership in their next move compared to 52% in 2007.
Every new home built in Scotland creates two full-time jobs so when you buy new, you have the added satisfaction of helping to maintain thousands of jobs in the industry and the many businesses which supply and depend upon it.
New homes come with the peace of mind a ten year warranty as well as the protection of the Consumer Code for Home Builders. Customer satisfaction levels are also at record levels in Scotland.
So with interest rates at continuing record lows, significant potential energy savings obtainable, a range of attractive deals on offer and a variety of innovative solutions available from home builders to help people achieve their dream move onto and up the property ladder, there's actually never been a better time to buy a new home.