New Build house prices post- Covid / Corona

TCW85

We have been planning a new build purchase since before lockdown but never financially committed. Now that the lockdown has been nearly lifted everything is getting back moving again. Prior to lockdown the house type we wanted was expected to be around £6k more expensive that the previous phase owing to natural increase in house values. 

With the market being uncertain to say the least and a lot of outlets expecting dormancy or even a fall in house values I was a little surprised to be told that the house was ‘expected’ to be priced around £10k more than in the previous phase. 

Anyone in a similar position or think they’re being a bit presumptuous that we’ll still go ahead with a purchase...


any help/views appreciated! 

ciderboy2009

Rather than looking at what "a lot of outlets" are predicting it might be worth looking at what is actuallty happening in your area.

Here in Bristol prices are still increasing in most areas.  I'm aware that prices are decreasing in other parts of the country.  At the end of the day there still aren't enough houses in this country.

You also need to consider how quickly the houses sale on the estate you're looking at.  If they fly out of the door as soon as they're released then the price the developer wants for them is only ever going to go in one direction.

Davesnave

According to the local media here in the SW, Covid has created more interest, though whether that translates into anything substantial remains to be seen. I'd imagine there will be various pushes and pulls operating on prices

bucksbloke

New build prices are tied more to Help to Buy than the pandemic. If they have a pipeline of people for the houses they are selling then they will sell them at the highest rate they can. If the changes to the Help to Buy Scheme are not delayed from 31 Dec 2020 - there could be a drop next year. Last time things were bad in 2008, and the housebuilders actually closed down sites rather than lose margin. 

GixerKate

I would suggest that is a starting point and you can negotiate from there.  The price we've agreed for our new build is lower than the price advertised plus we have carpets and a bunch of other things included.

Have you placed a reservation fee on the plot you want?  We put a reservation on the plot we want and only negotiated the price once we were in a position to proceed, ie an offer on our current property.

TCW85

Thanks all. There are two of the same house style struggling to sell with incentives already attached. The plot we're after is in a much better position however, so may attract more interest despite being in a later phase and higher priced.

We are due to reserve this weekend with the price being 'announced' over the next few days. We're keeping our fingers crossed for some incentives to still be applied as in our current situation I'd think we are in quite an attractive position as chain-free buyers without any help-to-buy etc..

RelievedSheff

It really does depend just how popular the estate is that you are looking to buy on and how popular that particular house type is. If they know they are popular and sell quickly then you are unlikely to get much off the asking price, if anything.

The sales offices recently reopened on the estate we bought on last year and they have had very brisk sales since lock down has been lifted and prices have not changed at all due to Covid 19. The last two plots of the same house type as ours have both now sold, their asking price was £10k more than we paid last year. Of course we will have to wait until the plots complete and they are registered with the land registry before we know how much they actually sold for.

The estate we are on has three developers currently building and all are doing well with sales. There are also another two developments close by and again both are recording good sales. It remains to be seen if this is a sustained recovery or just a post lockdown bounce but early signs are fairly promising.