Beware! - House Builders’ Year-end Approaches!

PRLog (Press Release) - Sep 27, 2006 -
This is the date when each of the builders’ regions have to report to their group head office, how many completions, that is homes they have built and sold, within their financial year. This is then released as either final (annual) or interim (half-year) results in their company accounts for their shareholders.

It is crucial for each region to achieve their target number of completions and everything is done to ensure they achieve the required figure. Sometimes directors lose substantial bonuses (and sometimes their jobs) if the target figures are not met. Very often your home is rushed to be finished in time for you to complete the purchase before the 'year-end' cut off date. This can result in a low standard of finish and reduced or forced drying out.

To ensuer the new home is “finished” the Council for Mortgage Lenders’ (CML) initiative now requires builders to obtain a completion certificate. This is issued by an independent Building Inspector, following a satisfactory final inspection of the property and is required before the lender will release mortgage funds. However a cash purchaser may not necessarily have this protection and should ask for the 'CML' before legally completing the purchase of the property.

Buying a new home that is scheduled for completion just before the end of the builder’s financial year or to a lesser extent, half-year, often results in a property being rushed and a poor standard. It is not difficult to assess when a particular plot will be completed. Once the scaffolding has been removed, it is normal for a house to be completed in ten to twelve weeks. Any property you may be considering should therefore be free of all scaffolding before the end of September or the end of March at the latest, depending on the builder’s financial year.

If you are considering an already finished (stock) property during the run up to the builder’s year-end, you are in a good position to get a large discount if you can “complete” the purchase on or before the year-end date. You may also be able to negotiate carpets and other extras as part of the deal.

A large proportion of house builders’ financial year-ends are in December, which is not the best time to move, especially into a newly built home. The builders are usually closed down over the festive period and arrangements for emergencies, should anything go wrong in the first few days, may be limited. It can also be more difficult to sell your current property during the winter months.

When buying a new home at the beginning of the builder’s new financial year (check link) be aware that builders may not be inclined to either price realistically, or give good discounts, as they will have time on their side to meet their required sales targets.

For more information on the best time to buy a brand new home visit:
www.brand-newhomes.co.uk The premier information website for the new home buyer.