Market Monitor
Stewart McIntosh finds new homes are enjoying wider appeal
A door has opened wide in the property market. For most buyers, the door between the new-build and the second hand sectors was kept firmly shut.
There were those who always bought new, then there were those who would only consider something older and more traditional. But the door which restricted the flow between those two sectors has been knocked off its hinges as people discard their prejudices and are prepared to move back and forwards between new and second hand.
Frustration at losing out on the sealed bid system is driving some traditional buyers towards new-build. Others are looking more keenly at the new-build sector because they are reluctant to meet the high repair costs and ongoing maintenance of an older home.
But this increase in demand has not meant that builders can simply shove their prices up. Buyers are much more educated nowadays about the kind of house they are prepared to purchase, which means the builders have to sweat to cement every sale.
''It's a tougher market than most builders like to admit,'' says Alan Baxter of estate agents Slater Hogg & Howison, which markets new homes on behalf of several building firms.
''In a competitive market buyers are shopping around and the builders are still having to offer incentives to win sales, especially outside of the hottest parts of the market like the West End or Bearsden and Milngavie.''
These incentives can have a real cash value for buyers. In the past, many incentives were mere froth and their cost was simply pushed on to the purchase price. But anyone living in a slow-moving part of the market will be getting a real bargain if they are offered 100% part exchange, or a free estate agency service, by a house builder.
Baxter is marketing the last couple of properties on a Miller Homes site. ''They come with fitted carpets throughout the house - now that's a very valuable incentive for any buyer,'' he says.
At a time when land prices are rising rapidly most builders do not feel they can pass the whole of the increase onto the purchaser, for fear of being undercut by a competitor. Instead, they are halving their margins on certain sites to keep sales going. This situation cannot last much longer, but in the meantime it represents a hidden perk for buyers.
Recently the West of Scotland has seen the development of a number of large-scale sites where half-a-dozen builders might be in active competition. Such sites offer buyers the chance to shop around, comparing price, size, design, special features, and space available.
''In these situations it is almost as if building sites are like neighbouring car showrooms - with the advantages and disadvantages of different models there on public view. It's a great chance for the consumer to shop around before making up their mind,'' says Baxter.
Over the last few years builders have responded to increased competition by raising their standards. New homes should be much more eco-friendly than their older counterparts. Better insulation and low cost heating systems mean that they are cheaper to run.
The new homes market has one other key advantage over the second hand sector. Fashion. A decade ago full double glazing, or an en-suite bathroom, would have been considered as features only for the upper end of the market.
Nowadays every new home has double glazing. And as soon as there is more than one bedroom there is almost certain to be more than one bathroom. As you move upmarket, even more of such features become available. A downstairs cloakroom is now an essential selling item in many homes. In the more expensive properties, the current focus is on the kitchen. Having been stripped down in size over the last 50 years, these are now being enlarged again. It is no longer enough to squeeze a family of four in at the breakfast bar, a family room or play area is rapidly establishing itself as an adjunct to the kitchen.
These features are popular in households where both parents are working. Busy buyers are looking for a place where the family can gather together as the evening meal is cooked. With more of us expected to spend more time working from home (even if that just means taking work home a home office is becoming established as a key feature in larger new-build properties.
Fashion is also having an important impact on our attitude to how the insides of our homes should look. To judge by TV schedules, interior design is the new rock and roll. Almost as ubiquitous as cookery programmes, the design shows will advise you on how to turn your bathroom into a spa, your bedroom into a bordello, or your kitchen into a culinary citadel.
''Because they create a feeling of dissatisfaction in their viewers, these programmes are having an impact on house sales - especially the new homes sector,'' says Baxter. ''People look around their own home, find it severely wanting compared to what they see on the telly, and decide to move into a place where they can really make a statement. ''
Any lover of traditional homes who is thinking trying the new homes market should consider one last advantage of buying new. In the second-hand sector, you can't be certain what price to pay - or if the seller will accept your offer, even if you are the only bidder.
But builders are in business to sell. And that means there are still bargains to be had, if you look in the right place.
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