NEW HOMES SHORTAGE WILL DRIVE UP PRICES OVER NEXT THREE YEARS

November 2008

With the number of new home starts reported to be down 50% on last year*, those buying in the new homes market can expect significant house price growth over the longer term, as the supply and demand imbalance worsens, according to the New Homes Mortgage Helpline, the UK's leading new homes mortgage specialist.

A growing array of financial incentives is being offered by developers, ranging from deposits and stamp duty tax paid to significant price reductions, making it easier for buyers to enter the new homes market.

Nic Spaull, Managing Director of New Homes Mortgage Helpline, comments:

“Despite current market conditions there are still people looking to move – whether through choice or necessity. New homes are a safe option compared to the second hand homes market, as the economic crisis has resulted in the number of new homes built this year falling a long way short of the Government’s targets.

"With this reduction in new starts looking set to continue into 2009, the existing shortage of housing is likely to worsen over the next three years, as housebuilders struggle to rebuild their workforces and return to full capacity. Those that are able to secure themselves a new home over the next few months are likely to see the value of their home well protected, and when the market recovers, new home values are set to rise considerably.”

Over the last year, the New Homes Mortgage Helpline has secured mortgage finance for over 100 new homebuyers every week. Despite current conditions in the mortgage market, the new homes mortgage specialist has over 2,200 competitive mortgage products currently available.

-Ends-

Notes to Editors

*NHBC October 2008

New Homes Mortgage Helpline is the leading UK new homes mortgage specialist, providing mortgage expertise to Housebuilders and their customers.

Visit www.nhmh.co.uk

For further information please contact The Wriglesworth Consultancy:

Sarah Randle s.randle@wriglesworth.com,
020 7427 1428

Claire Hendry c.hendry@wriglesworth.com,
020 7427 1407

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