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NewsArticle-08-09-2010

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Economic woes make new homes outstanding option for buyers

Despite the tough economic times, thousands of Scots will still be buying and moving home in the next 12 months.

And those who buy newly-built homes will be getting the better deal, according to David Pretty, Chairman of the New Homes Marketing Board (right).

He says the difficulties faced by the housing market over the last two years have resulted in lower prices which have improved affordability, directly favouring those in a position to buy.

“We have been through tough times and it’s not over yet, but it is too easy to be over-gloomy” he said. “The market is still moving and housebuilders are keenly pricing their new homes to sell and offering a wide range of help with moving costs and other incentives. This represents a great opportunity for Scottish homebuyers.”

Launching New Homes Month, which will showcase the range, value and quality of new homes across the country throughout September, Mr Pretty said the housebuilding industry had always offered buyers far more than the second-hand property market.

“As well as the fact that new homes are packed with lots more extra features than most older properties, the economic downturn has brought new home prices in line with the second-hand market, so there is no ‘brand new’ premium any more” he said. “Buying new is better value now than it has been for years, and more people are realising that.”

He added: “We know Scots are as wedded to the idea of home ownership as ever, with our own YouGov surveys showing that almost nine out of ten adults believe that buying their own home is a sensible investment in their future.  This is also borne out by recently published Scottish Government research reporting a significant increase in home ownership aspirations, despite the economic backdrop of the last couple of years.”

“The case for buying new homes – which are built to the latest energy-efficient ‘green’ standards and come with outstanding help and customer service at record levels - is now very compelling.”

Mr Pretty warned that, despite economic uncertainties, the underlying trend in the housing market was of massive undersupply with new households in Scotland projected to form at an annual rate of nearly 20,000 over the next 20 or so years.

He said: “Even before the current downturn, housing production was nowhere near enough to meet this growing need. When the recovery picks up, this will inevitably put upward pressure on prices.”

“While it is important that people make the right choices and do not overstretch themselves, this factor is another very sound reason to buy new – and buy now. What’s more, when you buy new, you don’t just get great quality and outstanding service, you’re supporting a vital industry.”

Mr Pretty emphasised the crucial importance of a healthy house building industry to our national, regional and local economies:
 
“While no one wants a return to an overheated market, housing is one of the key elements of our economy, producing tens of thousands of new homes for sale, for rent and for special needs occupation each and every year, often in partnership with local authorities, housing associations and other public bodies. With housebuilding previously contributing 6% of Scottish GDP - an estimated £6 billion a year – and supporting 100,000 jobs, its importance cannot be overstated”.

“The housing industry is one of our major employers with every new home built in Scotland creating 2 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 business, large and small, which supply and depend upon it." 

New Homes Month runs from September 4 to October 3 and builds on the success of last year’s New Homes Week, which gave the housebuilding industry a significant boost in the wake of the global credit crisis. 
 
For further information on New Homes Month, see www.new-homes-month.co.uk.

Notes to editors:

1. New Homes Month 2010 is a promotional initiative being run by the New Homes Marketing Board aimed at highlighting the benefits of new build homes. It will run from 4 September to 3 October 2010.

2. The New Homes Marketing Board (NHMB) was established in 1982. It promotes the need for new housing to the general public and raises awareness of the benefits of new homes. It also campaigns on behalf of buyers on a range of consumer related issues - particularly for first time buyers.

3. New Homes Month is supported by the National House Building Council (NHBC) and by Homes for Scotland. Homes for Scotland’s membership of some 200 companies together provides 95% of new homes built for sale in Scotland as well as an increasingly significant proportion of affordable housing.

4. David Pretty has for many years campaigned to highlight the plight of first-time buyers and the causes of the housing shortage. He was CEO of Barratt Developments PLC until October 2006, and was made a CBE for services to house building In the Queen's Birthday Honours List 2007.  He is a non-executive Director of the Home Builders Federation (HBF), Chairman of the New Homes Marketing Board, a trustee of The Prince’s Regeneration Trust and has also worked with Shelter, the homelessness charity.  He contributes regularly to trade publications and is an occasional advisor to Government and financial institutions on housing and planning issues.

5. Buying a new home has many distinct advantages over buying second hand:

• A bright, fresh, untouched new home
• The price is right – most homebuilders price their homes to sell, especially is competitive times, and will often negotiate
• Energy efficiency – new homes are built to the latest environmental standards and are much cheaper to run
• Much less stress and shorter buying chain
• Wide range of valuable help, including assistance with deposits, moving costs and part -exchange
• Fully-fitted, up-to-date kitchens and bathrooms, plus a choice of certain finishes and coverings, including tiling, flooring etc
• Peace of mind from a 10-year warranty
• Customer service – friendly professional staff who help every step of the way
• Customer satisfaction, now at record levels
• Opportunities to view typical showhomes in advance

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