Warning over new build bargains

Some new build bargains may not be all they seem, a developer has said.

Mark Ryder, the chief executive of propertydevelopment firm Isis, told the Times that people should be careful when they see property available at low prices or with buyer incentives attached.

The paper noted that some developers of new build have been cutting prices by as much as 40 per cent, while other tactics to tempt buyers include footing the cost of legal bills and stamp duty, or providing the residents with free gas and electricity for a time.

However, those who think they are getting a bargain need to consider whether these premises will gain in value or be hard to sell on at a good price in the future, Mr Ryder said.

He commented: "You have to think what those areas are going to be like in five years' time."

Those looking to obtain a home at a lower cost may find that self build is a better way to get a new home that will command a higher value in the future.

Earlier this week Landlord Expert quoted figures from Inside Housing, who said at the start of this year that as much as 50 per cent of new-build apartments in some urban areas were unsold.