Incentives bring house prices to 1990 lows

Incentives are bringing down the price of new-homes to bargains not seen since the 1990s, as house builders try to offload homes before the end of the year.

Large developers such as Taylor Wimpey and Barratt Developments are keen to agree sales by the start of December to process payments this financial year.

To attract customers, house builders are offering incentives including free carpets, cars, free travel and cash back.

Barratt is offering a three year price guarantee on some sites and has promised to contribute to some purchasers’ mortgages.

Professional investors told the Financial Times that public incentives on offer were nothing compared to what they were being given.

Stuart Law, chief executive of property investment company Assetz, said trade incentives included discounts up to 50% off Royal Institution of Chartered Surveyors valuations.

“(This is) the bargain of the century – never again will house prices be available at those prices. It feels like the 1990s again,” he said.