Investors lift new homes buying

Investors have boosted the new homes buying market, a new report claims.

Housebuilder Linden Homes said that it had experienced record sales of new homes so far in 2007, with sales 55 per cent higher than during the same period last year.

Property investors such as buy-to-let landlords are remaining "extremely active" in the town centre apartment market, the firm said, despite recent interest rate rises and the possibility of more rises before the end of the year.

The company said that with annual house price growth reaching 9.9 per cent in January 2007 according to Halifax figures and the average home in the UK now costing £188,623, many property investors have been driven to continue expanding their portfolios.

First-time buyers were also increasingly choosing new build homes over second hand properties thanks to their relatively low maintenance requirements and the availability of deals and incentives such as having stamp duty paid, the firm said.

Regional director of Linden Homes Chris Coates commented: "The fact that the new homes market is stronger than ever after three interest rate rises, demonstrates the extraordinary demand for new homes in the UK and highlights the shortage of land for development."

Research from the Mortgage Trust found that three-quarters of landlords are planning to hold onto their current properties for more than five years, reflecting their confidence in the strength of the market.

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