FALLING house prices and the prospect of a sluggish market over the next few years means that housebuilders are now more generous than ever when offering incentives to clinch a sale. Luxury Christmas hampers, mouth-watering mortgage deals and thousands of pounds to cover the stamp duty are just some of the sweeteners available to buyers as builders strive to meet sales targets before their financial year ends. Those ready to move could get a good deal if they sharpen their bargaining skills.

According to figures from SmartNewHomes. com, a website dedicated to new-builds, the average price of a new home has dropped to £258,760, down 1.3 per cent since August.

David Bexon, the managing director of SmartNewHomes.com, said: “The recent price fall is not surprising, considering the slowing market. With many financial year-ends for housebuilders taking place just before Christmas, the majority of developers will be acting quickly to sell homes. The market is tough at the moment – much tougher than last year – but builders are still committed to make a certain volume of sales. So if you are a buyer it is definitely worth negotiating. Prepare yourself well and be ready to walk away. Whether it’s carpets and curtains or money off, you won’t get what you don’t ask for.”

The sale of new Barratt homes has fallen by 14 per cent since the summer, but this kind of bad news for builders is good news for first-time buyers such as Isobel North, a 31-year-old beauty consultant, who got on the property ladder by asking Barratt to pay the 1 per cent stamp duty on her £209,995 two-bedroom apartment at Forest Place in Walthamstow. The deal saved her just over £2,000, but North was also able to negotiate a private parking space that would normally have cost her £8,000. The price included an oven, microwave, hob and extractor as well as carpets. North says: “I’m very pleased with my apartment. I have an integrated kitchen which looks very tidy and smart.”

James Brewer, a 36-year-old landscape gardener, managed to buy a three-bedroom townhouse in Market Harborough, Leicestershire, with help from Bellway, which paid his 5 per cent deposit. Similar houses on the scheme cost about £219,000, so the 5 per cent is worth almost £11,000.

As the market tightens, Bellway is offering even bigger incentives on other schemes. At the Embankment development in Gravesend, Kent, the developer is offering a mortgage subsidy of £1,000 a month for two years on a £205,000 two-bedroom flat and £750 a month on a £172,5000 one-bed.

Buyers are also being offered mortgage subsidies of about £750 a month at the Linden Fields in Tunbridge Wells, where property prices range from £275,000 for a large two-bedroom flat to about £560,000 for a four-bedroom house. Buy here and Bellway will also pay for your stamp duty and legal fees, as well as helping with the cost of the move.

As Christmas draws near and the champagne starts to flow in marketing suites up and down the country, some of the incentives take on a seasonal twist. The two showhouses at the Sherfield Park development near Basingstoke, Hampshire, come fully carpeted and with curtains already in place. Croudace, the developer, is also paying the stamp duty and offering a Christmas hamper to sweeten the deal to those who complete before Santa calls. The Gainsborough showhouse, a three-bedroom terraced property with a study, costs £399,950, and the Brindley is £325,950.

Being in a cosy new home in time to carve the turkey is a great draw, but housebuyers must look beyond the glitz and make sure that the offers being made are really worth having before signing on the dotted line. Sales incentives are not acts of charity. New homes often sell at a premium of up to 15 per cent compared with older properties. When prices are rising strongly, this discrepancy is easy to ignore. But if prices fall – or even if the market remains flat – will buyers be able to sell the property for more than they paid for it? In fact, will the property sell at all?

Builders will not offer the same incentives on all their developments. Like discounts during the sales, the most generous offerings are usually reserved for items that have not shifted easily. Buyers need to ask themselves how easily they will be able to sell the property without the appeal of a deal on stamp duty.

Complex financial deals also need close scrutiny. Offers of subsidies on mortgage payments may look attractive now, but what happens farther down the line? Will you still be tied to the loan? What about other charges – such as set-up fees? Buyers may find that what they save with one hand they end up spending with the other.

The year-end is only weeks away, but David Pretty, chairman of the New Homes Marketing Board, cautions against excessive haste. “After many years of demand exceeding supply, we are now in a buyers’ market and builders are going to be keen to maximise their share and be as generous as they can. Shrewd buyers who move fast will get great deals, although I would always advise them not to get carried away. They should search for the home and the deal that suits them best.”

www.barratthomes.co.uk . www.bellway.co.uk. The Gravesend development: 01474 568436. Linden Fields: 01892 515210. Sherfield Park: 01256 883704.

From Beijing to New York, view the world's ten most ambitious new buildings at: timesonline.co.uk/newhomes

TOPTIPS

At present it’s a difficult market for new-build homes. Here are a few things to consider if buying from a developer:

Some areas may be suffering from a glut of new-build flats for sale. This might affect the value of the property and make it more difficult to sell in the future.

Lenders are becoming increasingly reluctant to offer mortgages on new-build flats; some may require deposits of at least 30 per cent of the value of the property. Buyers might find their mortgage options limited and could end up paying a higher rate. New-builds are often more expensive to buy than an equivalent older property.

The building industry effectively closes down over Christmas. So if you are rushing to move before the holidays you may have to wait until the new year to sort out any “snagging” problems with fixtures or fittings.

New-build homes can sometimes be smaller than they initially appear. For example, many showhomes have no internal doors or may have dining tables pushed against the wall to give the illusion of more space. Check that you will have enough room for storage; often the second bedroom can accommodate little more than a double bed.

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