Market myths: leading developers restore hope for Milton Keynes homebuyers
Amidst a seemingly tough housing market, five star developers Barratt and David Wilson Homes have debunked several key myths to bring confidence back to prospective property seekers in Milton Keynes as part of New Homes Week (27th February to 3rd March).
A wide range of current affairs have certainly sparked doubt among those looking to take their first or next step on the property ladder, but the UK’s largest national housebuilder’s message is a simple one; keep calm, and carry on.
As noted by property purchasing specialist House Buyer Bureau, the UK’s housing market has slowed down drastically, and the average level of monthly transactions over the last six months fell by almost a quarter compared to the previous six months. That said, the noticeable effects on the market are largely due to the bursting bubble of a booming market which was the result of the COVID-19 pandemic, when demand for housing was at its peak.
Whilst the appetite for a house move has decreased, Rightmove has confirmed there’s still a 20% increase in buyer demand compared with 2019, which shows how drastically the market has changed since the pandemic.
New Homes Week is an annual celebration and recognition of new build homes, homebuilders and homeowners. The event was launched by the Home Builders Federation to provide an opportunity to share the benefits of buying a new build home.
The theme for this year’s campaign is ‘Make your move’, which will share information to help people understand their options for buying a home in the current market, including incentives and schemes, increasing affordability and taking advantage of the value for money of energy efficient new homes.
Jason Hearn, Sales Director at Barratt and David Wilson Homes South Midlands, said: “For many would-be homebuyers, the housing market can look daunting in the current state of affairs but we’re here to reassure property seekers that it’s still a strong market.
“There are many things being reported which might put people off a move, but we’d like to restore confidence in homebuyers by showing that the market isn’t declining, but simply returning to a former level.”
Barratt and David Wilson Homes have set out to bust the following myths in consumer attitudes towards homebuying:
Interest rates have rocketed…
One of the most common myths surrounding the current housing market is that interest rates have massively increased. Whilst they have increased, it’s not as drastic as it may seem.
A comparison by Statista shows that the average five-year fixed rate mortgage in March 2019 was 2.03%, and the current average as of September 2022 was 3.96%. What’s more, the current average is less than those in a 10-year period between March 2000 and December 2010.
Historically, fluctuating mortgage rates aren’t uncommon and, following rapid growth, is sometimes rapid decline. As noted by Think Plutus, interest rates rose towards the end of the 1980s, partly under the pressure of house price rises, and went from 17% in 1979 down to 9% in 1982, and were back to 14.88% by October 1989.
Whilst the recent increase might look daunting for UK homebuyers, it’s not totally indifferent to the shifts in the past.
There aren’t many lenders offering mortgage deals…
Many prospective buyers fear that there aren’t many mortgages out there which, despite some lenders waiting for the market to settle down, isn’t strictly the case.
Interest rates have risen but the Financial Times reports that Barclays, Skipton Building Society, NatWest, Virgin Money and Nationwide are all among those to back the market with new mortgage deals.
Jason said: “It’s easy to get drawn into the reports of there being a lack of lenders with mortgage deals on the market, but there are still plenty of options available.
“Furthermore, when buying with Barratt and David Wilson Homes, we can introduce our customers to an Independent Mortgage Adviser to provide a greater insight into affordability and find the best deal possible.”
You need a lot of money to buy a house…
If it isn’t fear of interest rates for potential purchasers, it’s the worry of increasing house prices. Now people have settled back into a new normal, the market is steadying and people are looking for new homes based on their new priorities, such as a move to a more rural area, and as house prices level out it might lead to property seekers thinking a move is unachievable.
On the contrary, Barratt and David Wilson Homes can help new buyers with a range of moving schemes to make a property purchase more affordable.
Initiatives such as the housebuilder’s Key Worker Deposit Contribution scheme are available which, on reservations before 30th June 2023, can enable Key Workers to receive £1,000 towards a deposit for every £20,000 spent on the purchase price.
Likewise, there’s also the housebuilder’s Deposit Boost scheme. If a customer has managed to save a 10% deposit, the developer could boost it by funding up to an additional 5% of the sale price – which could give the buyer a 15% deposit.
Jason added: “As the market adjusts to the new normal, we’re not surprised to see a levelling out in house prices and this is a great benefit for new homebuyers.
“We have a wide range of offers and moving schemes available across our developments to make buying a home more affordable, and more of a comfortable process. We can also help our customers secure a mortgage deal that suits their needs.”