Andy Frankish, new homes director at Mortgage Advice Bureau (MAB), comments:
“House prices made a clear annual leap of more than 10% in May, bringing good news for current homeowners who could be propelled onto the second rung of the property ladder as a result of improved housing equity. Further increases are more of a concern for first-time buyers, however, who face a proportionally higher rise compared to existing owners .
“Potential new buyers would do well to consider new build properties, which have increased in price by 3.8% less than pre-owned dwellings and generally come with fewer maintenance or improvement costs. The government’s Help to Buy equity scheme and recent commitments from Lloyds Bank to extend 95% loan to value (LTV) lending to new-build properties mean consumers will find plenty of financial assistance available for new build properties.
“With new work on housing currently driving the construction industry, first-time buyers should find new build homes an increasingly affordable and realistic option.”