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Mortgage holders pay more first time out

Date: Fri, 22 Oct 04 Analysis

A new survey by SmartNewHomes.com has revealed homebuyers are willing to pay around 50 per cent above the average for a new home.

In the study, people generally admitted they would spend an average of £223,742 for a new home, compared with the average house price of £153,727.

Despite a slowing price market, it appears from the survey that the majority of people are still content to spend more for a new house and five per cent of those claim the reason is they still expect to make a profit on their investment.

SmartNewHomes chief executive David Bexon commented: “The results of this survey clearly show that UK homebuyers are willing to pay a premium for the benefits of a new home."

13 per cent of the respondents cited incentives offered by house builders to encourage purchasers to buy new as the most important reason for choosing a new house over an old one.

However, top of the list of reasons why people buy new was the low maintenance costs involved in a new home and was closely followed by ten year house builder guarantees.

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