Consumer confidence on the increase in Thames Valley

With the UK experiencing a reported economic downturn in recent months and the difficulties involved with trying to secure a mortgage deterring hundreds of househunters from buying a brand new home, it's no wonder consumers are being cautious when looking for a new property.

Karen Howard, head of sales for leading homebuilder Persimmon Homes Thames Valley, states: "It's been widely reported that the housing industry as a whole has been greatly affected by the recent economic conditions, and Persimmon is no exception to this. Over the last six months it has been frustrating to see that although demand has remained high, often interested parties weren't able to obtain a mortgage which has hindered their intentions to buy.

"Thankfully, in the last few weeks, we have been able to offer greater assistance to househunters hampered by these circumstances, therefore seeing an improvement in conditions and a return to consumer confidence around the Thames Valley area."

David Thomas of independent financial advisory service, Chadney Bulgin works alongside Persimmon Homes in supporting homebuyers. He adds: "Confidence is improving and we are seeing a notable difference in conditions in comparison to earlier this year where mortgage lenders reduced their product offering and tightened their lending criteria, which caused problems for some house purchasers at that time.

"Recently it's been heartening to see that fixed rate mortgage interest rates are at averaging 5.5 per cent, which is comparable with the competitive rates in July 2007 before the reported economic downturn began.

"We have seen an increase in first time buyers in particular returning to the housing market, especially to new housing developers such as Persimmon as they realise that with the range of incentives and schemes available to assist their move, now is a good opportunity and time to purchase their first home."

Persimmon has a number of incentives and initiatives in place to support both first time buyers and those looking to move up the property ladder, aimed to ensure that purchasers can find their dream home at a price they can afford.

Take for example the recently launched Government backed ‘My Choice Homebuy' initiative, where Persimmon is able to offer a range of properties at selected developments with 50 per cent shared equity.

Under the scheme, apartments available from £149,950 are on offer for just £74,975*, making them extremely affordable for those looking to get a foothold on the property ladder. Purchasers would pay their mortgage on the first 50 per cent, while the remaining 50 per cent is payable over ten years and at just 1.75 per cent, which is well below the average rate of repayment loans*.

Highlighting that it is cheaper to buy than rent Persimmon has researched that those buying could save up to £200** per month by purchasing through the My Choice Homebuy scheme.

For those with homes to sell, part exchange remains a popular option and the initiative guarantees a purchaser for homeowners, and Persimmon will sell the property at a guaranteed price. In additions to this, there won't be any pricey surveys or agents' fees.

Karen continues: "We have seen that the range of schemes on offer, further to our variety of incentives available through us has meant that we are starting to see increased sales and confidence across a number of our developments."

Choosing to buy a new home as opposed to second hand property boasts numerous benefits. Persimmon homes are priced in line with current market conditions and in most cases are already pre-valued by mortgage lenders to ensure the buying process can proceed smoothly, expert help and advice is readily available, tailored incentives mean buyers can be confident their home represents excellent value and the houses come with a two year warranty with Persimmon and a ten year warranty with the NHBC.

Karen attributes Persimmon's recent sales success to a number of factors including their realistic approach to selling homes and first class service and products. She concludes: "The whole team should be commended in being able to assist all our purchasers in understanding the current market conditions and helping them to realise that not only is it a good time to get on the property ladder, but that a new home represents excellent value now and in the long term."

* Terms and conditions apply and the initiative is site and plot specific

** Figures correct as of September 2008