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Owner-occupiers 'driving demand for new build homes'
12/03/10
Edited by Andy Jowett. Owner-occupiers, rather than buy-to-let investors, are the "dominant force" in driving demand for new build housing, according to one property expert.
David Bexton, managing director of SmartNewHomes.com, was commenting after new figures from real estate consultant Knight Frank showed that sales of newly constructed homes in London rose by 214 per cent in the fourth quarter of 2009 compared with the last three months of 2008.
However, it said that the overall supply of residential property was 20 per cent lower between October and December than it was during the first quarter of the year.
The jump in sales came as "no surprise" to many in the industry, Mr Bexton claimed, as buyers are increasingly looking to take advantage of cut-price deals being offered by developers.
"Affordable finance for buy-to-let investors remains especially hard to come by as mortgage companies continue to restrict lending, giving credence to the idea that owner-occupiers are the dominant force behind the current high demand," he added.
According to Rightmove, the average asking price for a home in London rose to a record £427,987 in January.
