Builders struggling to keep up with Help to Buy success – Nationwide
James Chidgey, senior manager of new build at Nationwide, said the mutual had seen a rise in demand for new-build properties that had left developers unable to cope.
“Such has been the success of Help to Buy for our national and regional house builders, that many developers have been struggling to cope with demand,” he wrote in an article for Your Mortgage sister title Mortgage Solutions.
“They have been unable to fully develop their active sites at the rate sales are being made, owing to a skills and labour shortage in the construction industry. This is leading to delays with completion dates and therefore instances of borrower’s offers expiring are becoming more common.”
Chidgey said it was crucial for advisers to work closely with their clients to make sure they understand the new-build purchase process.
“Advisers who have clients seeking a new-build property will need to manage their expectations of extended completion dates, advising clients not to do anything in the interim that might adversely affect their credit rating before the completion date.”