Over the past year there has been an 11 per cent increase in the number of new home sales completed using part exchange, as second steppers move into larger, family homes.
Move with Us, the largest outsourced part exchange provider in the UK, compared data from the fiscal years 2012 and 2013 and believes the rise in part exchange transactions is due to a number of reasons.
These include a change in the types of property being built to suit current market needs including more family sized homes, an improving property market, and government schemes such as NewBuy.
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: “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 per cent 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.”
