Could part-exchange be answer for house-builders?

Part-ex clearly works for home buyers who might otherwise have been unable to sell their houses and therefore could not move.

But it could offer an even bigger bonus for building firms.

By buying up property now at what is likely to be close to the bottom of the market the firms are getting stock at its lowest feasible price.

If the market starts to move upwards in the next 12 months those properties will increase in value meaning that builders could make a decent profit on these secondary sales.

Of course this is assuming building firms are not forced to offload this stock too quickly before the market rises – or that the market does not crash further.

But it would be reasonable to assume that even with the Recession house prices are close now to bottoming out if they have not done this already.

As such part-ex makes sense for both builder and home buyers.

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