Mortgage drought is delaying market upturn says Barratt

Barratt Homes North East has reported a busy start to the year, with its developments across the region seeing increased sales inquiries and rising visitor levels.

However, the housebuilder says that while there is undoubtedly demand for new homes, market conditions remain difficult due to the scarcity of mortgage finance.

Managing Director Bernard Rooney said: “We have seen a marked increase in sales inquiries and visitor levels at our developments in recent weeks.

“There is undoubtedly demand as people are realising that now could be a very good time to buy. Prices are lower and developers are offering a wide range of assistance to help buyers, including shared equity schemes and part exchange.

“But if people are unable to obtain a mortgage, they can’t go ahead with a move.

“Market conditions remain very difficult and despite the series of recent interest rate cuts I see little prospect for recovery until mortgages are more readily available.”

Pent-up demand in the North East is demonstrated by the success of the new HomeBuy Direct scheme, backed by Barratt, the industry and Government, which enables buyers to move into a new home for just 70 per cent of the price.

More than 200 prospective buyers have already expressed an interest for the new scheme with Barratt.

Homebuyers taking advantage will receive a 30 per cent equity loan funded jointly by Barratt and the Government. The buyer finances the remaining 70 per cent either through a mortgage, a deposit or a combination of the two.

Barratt is backing the initiative with 3,000 homes nationwide and 68 in the North East, at Consett, Hebburn, Middlesbrough and Sacriston.

Mr Rooney added: “We have had a tremendous response to the scheme which shows that there is enormous demand for new homes in this area. People who have been priced out of the market can see this is an outstanding opportunity.”

The initiative is open to first-time buyers, key workers and others currently renting.

Further details are available at barratthomes.co.uk.