Personal Finance Guide

Leading UK Home construction company, Taylor Wimpey reports this day that it is encouraged by stability in the housing market. It seems that their forward orders are up by 73% since the end of 2008, and they are presently seeing a decrease in the number of cancelled orders. The conclusion seems to be that House prices are now broadly flat and that new House buyers are returning to the market in significant numbers.

Forward orders are agreements by buyers to purchase properties from developers. A growth in forward orders tells us that more people are prepared to enter into new property purchases. This gives the constructor the comfort of knowing that he’ll have a Quick Property Sale as soon as the property is built. The reasons for this growth in forward orders are probably twofold.

Firstly, purchaser confidence is growing. Pent up demand for new homes is now starting to take effect, and purchasers who just a few months ago kept their hands in their pockets are now prepared to take the buying commitment. This is further fuelled by the, albeit slow, improvement in mortgage availability and the slackening of mortgage terms and interest rates. Home developers are also presently offering the ideal purchase incentive schemes seen for many a year, further increasing demand.

Secondly, new House purchasers are on the increase because they are starting to make sales on their existing properties. This is a vitally important effect. If sales of older houses are impeded then people cannot fulfil their aspiration to climb the housing ladder, and so will be unwilling or unable to make forward commitment to House developers. Selling your home at a lower than expected figure is more attractive when you’re buying from a House developer who is pricing aggressively and offering a highly attractive incentive package.

The builder must Sell Property Fast, as soon as he’s completed it, and if you’re able to get yourself in the position of a cash House purchaser; you’ll be able to get a fantastic discount. So much so that it may well pay you to sell to one of those “Sell my Property fast” firms to allow you to make a rapid sale of your old house although that would undoubtedly involve discounting it heavily.

Taylor Wimpey is the largest new Home construction company in the UK and a 73% increase in forward orders is a very significant one. There are now grounds for real hopefulness that the home value drops of the past 2 years are now a thing of past, and that sales of properties will go on climbing and start to push values back up in the short to medium term.

A further positive effect is that in order to fulfil rising demand; Home developers must increase their construction activity and will have to re employ staff and workers recently laid off. This will at least slow down the rate of increase in unemployment, and will give a knock on effect for the economy Furthermore, subsidiary industries, such as raw material manufacture for the building industry will see an upturn in orders which once again will feed back into the overall economy.

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