The below article has been published by the property portal zoopla.
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The UK's new homes market is being negatively impacted by mortgage lenders who are holding back from providing good deals to buyers, according to one expert on the subject.
Vernon Pethard, managing director at NewHomesforSale, said that the market is being affected by "fragile confidence" and "general discrimination", which is leading to a restriction in overall price growth for new builds.
His comments follow the publication of research by SmartNewHomes, which revealed that the average price of a new property fell by 0.4 per cent in March to £218,344. Annually, growth in the price of new homes was one per cent last month.
Mr Pethard said that the "prudent attitude" adopted by many lenders is "not helping matters" for potential homeowners.
He added: "Lenders generally discriminate against new-build homes, by unjustifiably offering lower loan-to-value mortgages on brand new properties compared to re-sales, making it harder for many prospective buyers to purchase a new home, which holds back demand."
The expert said that this is in spite of the fact that many new homes do not necessarily command a "premium" in price, and are also far more energy efficient on average and cheaper to run overall than the majority of older properties.
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