The property investment and development company claims that with London experiencing the most pronounced shortage and the fastest rate of house price growth in the country, many view buying off-plan as the only way to get a property in the capital.
While overseas investors are also returning to this market, following a period that saw them exert increased caution because of falling house prices and unfavourable mortgage terms, recent research shows that 60% of off-plan buyers in London are now owner-occupiers.
Outside of London the housing shortage in city centres such as Birmingham, Manchester and Liverpool the housing shortage is resulting in an increase in sales of part-completed schemes, where construction has started and a show home is available.
Stuart Law, chief executive of Assetz, said: “We first witnessed a renewed interest in off-plan 12 months ago, with demand levels in London now beginning to push prices up for this type of property.
“Off-plan holds many benefits for buyers – there is no immediate need to have a mortgage in place and Stamp Duty costs are not paid until completion. For investors looking to make good returns I would recommend that they carefully research the area in which they are buying and consider using specialists.
“It is unlikely that off-plan will return in any significant volume outside of London for some time. However, the increase of part-completed purchases in city centres is likely to become increasingly popular as the year progresses.”
