Nearly 60% of housebuilders offer non-cash incentives to buyers – Knight Frank

Almost 60% of housebuilders are offering non-cash incentives to buyers as difficult market conditions continue, according to global property consultancy Knight Frank.

Knight Frank’s Q3 2023 Land Index & Housebuilder Survey, revealing the market views of 54 volume and SME housebuilders, shows that 59% of survey participants said they were offering items including carpets or white goods.

More than 40% have contributed to legal fees or stamp duty. Almost a quarter are offering contributions to deposits. A further 16% of respondents are either offering cashbacks or mortgage subsidies.

In Q3, the biggest challenges for the sector were planning delays - 80% of respondents cited these. After this challenge were concerns about land availability, and mortgage availability and cost, both at 47% of survey participants. And 36% identified buyer sentiment and the outlook for the UK economy as key issues.

Knight Frank’s survey also shows that housebuilders are split over the future direction of England’s land prices. Forty eight percent said they expected average land values to fall in Q4 against Q3, while another 48% forecast they would stay flat. Only 5% of respondents expected an increase.

According to Knight Frank’s Q3 Residential Development Land index, urban brownfield …