UK New Residential Property Market demonstrating 1st Signs of Stability by John Akin

Leading United Kingdom Home builder, Taylor Wimpey reports today that it’s encouraged by steadiness in the housing market. It has been announced that their forward orders have grown by 73% since the end of December 2008, and they are currently seeing a decrease in the number of cancelled orders. The conclusion seems to be that Residential Property prices are now broadly flat and that new Residential Property buyers are returning to the market in significant numbers.Forward orders are agreements by individuals to purchase houses from developers. A growth in forward orders indicates that more individuals are ready and willing to enter into new residential property purchases. This gives the constructor the comfort of knowing that he’ll have a Quick Property Sale as soon as the residential property is built. The reasons for this increase in forward orders are probably twofold.Firstly, purchaser confidence is growing. Bottled up demand for new houses is now beginning to play out, and purchasers who just a short time ago kept their hands in their pockets are now ready and willing to take the purchase commitment. This is further fuelled by the, albeit slow, increase in mortgage availability and the easing of mortgage terms and interest rates. Residential Property developers are also currently offering the best purchase incentive schemes seen for many a year, further improving demand.Secondly, new Residential Property purchasers are on the increase because they are beginning to complete sales on their existing houses. This is a highly important effect. If sales of older homes are held back then people cannot fulfil their aspiration to move up the property owning ladder, and so will be unwilling or unable to make forward commitment with Residential Property developers. Selling your home at a less than expected figure is more attractive if you are buying from a Residential Property constructor who is pricing aggressively and offering an excellent incentive package. The developer must Sell Property Fast, as soon as he’s finished it, and if you are able to put yourself in the position of a cash Residential Property purchaser; you’ll be able to achieve a fantastic discount. So much so that it may well pay you to sell to one of those “Sell my Property fast” organisations to enable you to make a rapid sale of your old property even though that will undoubtedly involve discounting it heavily.Taylor Wimpey is the number one new Residential Property building company in the United Kingdom and a 73% improvement in forward orders is a highly significant one. There are now grounds for genuine confidence that the property price plunges of the past 2 years are now a thing of past, and that sales of houses will carry on climbing and begin to push prices back up in the short to medium term.A further positive effect is that in order to meet rising demand; Residential Property building companies must up their construction rate and will need to re employ staff and workers recently laid off. This should at least put the brakes on the rate of increase in unemployment, and will provide a knock on effect for the economy generally. upstream industries, such as raw material production for the building industry will see an increase in business levels which once again will feed back into the overall economy.