House builders cutting property prices

Posted: 05 Dec 2008 09:31:18 GMT

House builder Bellway has suggested that the trend among fellow house builders, in which they lower house prices to attract buyers, is contributing to wider property depreciation.

The housing market is already firmly in favour of buyers, and newly built homes had for a long time held out against price falls compared to average house prices.

Now, however, Bellway has accused home builders of contributing to wider falls in prices by being too eager to provide discounts to potential buyers.

"Sales incentives are used on virtually every private sale and, other than cash discounts, part exchange has been the most commonly used incentive," the group explained.

"Pricing pressures, driven in the main by certain competitors' activities and lenders' lower valuations, could lead to continued margin erosion."

Homeowners will be well aware of the falling house prices of the current market, and will no doubt be keen to sell before they drop further.

Selling a house online could lead to more buyers viewing the house, and therefore could bolster a homeowners' asking price.



© Houseladder Ltd