New homes could become a scarcity, says Walton Homes
With the rate at which new homes are being built having fallen to its lowest level since 1946, Walton Homes is warning that new homes in the Midlands could become a rare commodity.
According to surveys published by two of the major mortgage lenders, the Halifax and the Nationwide, house prices rose by five per cent during the course of 2009 and values are continuing to rise this year. This evidence shows that the UK’s housing market is experiencing healthy, sustainable growth; however, less than half of the 240,000 new homes that are required per annum to keep pace with demand are currently being built.
Andi Summerton, managing director of Walton Homes said: “At present, our rate of construction across our six live Midlands developments is keeping pace with demand. However, with so few new homes currently being built in the region, this situation could soon change and we could return to a scenario where purchasers are lining up to reserve plots as soon as a new development is launched.
“Obviously with the economy still being in a depressed state, this may seem like a long way off, but we have evidenced significantly more homeowners having the confidence to look to move up the property ladder since the start of this year and crucially, we have had more enquiries from first time buyers too. We are certainly not suggesting that the boom time markets of 2003-5 are on the horizon, but what is possible in the not too distant future is that the real scarcity of new homes means they start to become a rare commodity.
“My advice to anyone considering purchasing a new home this year is that now is a great time to buy. We are currently able to offer very attractive incentives, including part exchange deals, paying stamp duty and discounts and we can even match a first time buyer’s deposit up to an agreed threshold to help them to secure a good mortgage offer. However, if demand starts to exceed our rate of construction, these incentives will disappear and we will start to take a look at our pricing strategies.”
Walton Homes’ most popular incentive schemes include the Lion’s Share initiative, where buyers only need to pay 75 per cent of the value of their new home through a deposit and a conventional mortgage. Walton will pay the remaining 25 per cent share, with the only requirement being that when the property is eventually sold on, or after 10 years – whichever is sooner – the 25 per cent share is paid back to the developer as a proportion of the property’s current market value.
Another incentive programme currently being offered is Select & Move, which enables existing homeowners to reserve their preferred plot for a 12 week period. Walton Homes will appoint estate agents to market the purchaser’s current home and providing it is sold within this timeframe, Walton will cover the estate agent fees, significantly easing the upfront costs associated with moving home.
Walton Homes’ current development portfolio comprises luxury family homes at both Honeybourne Grange in the sought after village of Alrewas and at Willowmead in Stapenhill, close to Burton on Trent. Elsewhere in Staffordshire, the family-owned developer is creating character rich one, two and three bedroom homes at the historic Hemlingford Mill conversion next to Kingsbury Water Park. In a tranquil setting in Kings Bromley, Walton Homes has also recently completed a £1.5million statement home that exudes designer style and opulence.
In affluent Mere Green in Sutton Coldfield, Walton Homes is marketing large luxury apartments at a sensitively designed development named The Lincombes, where the second phase has just been launched. In Corby in Northamptonshire, the house builder is nearing the end of the development programme at Radbrook Rise, which has been an extremely popular development of 101 two, three and four bedroom homes.
Information on Walton Homes’ development portfolio can be found at: waltonhomes.co.uk
