The demand for the UK’s newly built homes seems to be increasing during this festive period of December. According to a report released by Stone Real Estate last Thursday, the prices of newly built homes are largely not affected by the holiday seasons.
The agency further noted that new building sales have been on the rise for the past five years during the months of December, while sales for existing properties tend to dip during the period.
Since 2014, December real estate sales for new buildings have accounted for about 11.9% of the annual sales. Now during the same period, existing homes only account for approximately 8.2% of the overall real estate sales.
“The new-build sector doesn’t come under the same seasonal strain when it comes to sales transactions when compared to the existing sector,” the founder and CEO of Stone Real Estate, Michael Stone, stated in the report.
In Mr. Stone’s view, that happens because on one side of the chain is a professional entity; the lack of chain means that deals on new builds can be made more quickly and without many of the typical complications that can come with an existing property sale.
While prices for new properties remain bullish during this holiday period, “developers will often include some festive incentives to persuade homebuyers to take the plunge. This, of course, all helps favorably towards their end-of-year figures,” Stone added.
Developers are keen on making this year even greater amidst the pending Brexit, elections, and a possible economic slowdown.
A recent article by The Guardian stated that the UK property prices started rebounding last month, despite the uncertainty in the market. The average price of a home increased to £234,625 (rising by 1%) in November, to record the largest rise since February this year. The increase depicts a 2.1% jump in home prices than one year ago.
According to Halifax, the total overall increase in home prices during the year is about £3,904 and is expected to continue rising moderately as we approach the new year.
“While a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties,” the managing director of Halifax Russell Galley said.