The number of new home sales completed using part exchange has increased by 11% when compared to the same period last year, according to data from Move with Us.
The outsourced part exchange provider compared data from the fiscal years 2012 and 2013 to determine the rise. A change in the types of property being built to suit current market needs, an improving property market and government schemes such as NewBuy have been cited by Move with Us as factors which may have impacted the rising number of part exchange transactions.
In the last few years, house builders have turned away from building smaller units towards creating more family homes. This means house builders are selling more homes to so called ‘second steppers’, who have outgrown their properties, want to move in faster timescales or who simply don’t have the financial ability to move via the traditional route.
Robin King, director at Move with Us, said: “We’ve seen some encouraging signs for the property market recently and this is yet another win for the overall housing market. With house builders now responding to the current demand and opting to build more family orientated homes, it’s no surprise that we are seeing more and more homeowners turning to part exchange to get moving. Selling more properties to second steppers has the welcome side effect of freeing up smaller properties that are ideal for first time buyers.
“Part exchange schemes give aspiring homeowners who are looking to move up the property ladder an opportunity to sell their current property quickly, without the hassle of property chains and the expense of paying estate agents’ fees. New builds are popular amongst today’s busy buyers as they are generally easier to maintain and cheaper to run.
“Government incentives such as the NewBuy scheme have made new build properties accessible with just a 5% deposit at a time when mortgage approval rates have been low. Part exchange is an attractive option – guaranteeing the home owner a buyer for their old property at a true and fair market value.”