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Economic uncertainty holding back new home buyers

Commenting on the data, Steve Lees, Director of SmartNewHomes, said:

“The latest data from the New Homes Index shows that the new homes market remains broadly flat, with positive price growth over the past three months. There is no doubt that consumer confidence remains weak and people are being deterred from moving due to the cost and the prospect of increased mortgage debt for many buyers.

“While we would urge the Bank of England to keep interest rates low for as long as possible, it seems inevitable that rates will begin to creep up this year. This will discourage people further from moving home as well as making it harder for first-time buyers to purchase their own property. However, the new homes market is better placed than the resale market to meet the challenges created by the current economic uncertainty. Developers are already bringing innovative finance models to the market enabling buyers to access 95% LTV mortgages, as well as incentives such as part exchange and shared equity schemes to make the transition into a new home easier and more affordable."

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