News
In the loop - November
New Taylor Wimpey-movewithus Collaboration
15 November 2007
Taylor Wimpey, the UK’s largest housebuilder, is launching an innovative alternative to traditional part-exchange which will further help customers who have an existing house to sell. The ‘Easymover Secure’ product offers the certainty of a guaranteed purchase at a pre-agreed fair market value, if a sale is not achieved privately during the assisted period.
The new proposition is part of a collaboration with movewithus and newly formed property-trading company Secure Home Purchase Limited, who will buy the properties in before reselling them back on the open market. The guaranteed purchase element is based on buying at a fair market price that reflects the actual market value of the property, since the properties must be subsequently sold on. As resale specialists, movewithus are best placed to take on the associated risks. This leaves developers free to focus on what they do best - building and selling new homes.
Robin King, a founder of movewithus, said; “Secure Home Purchase was the natural next step for us. movewithus has developed the capabilities to accurately value and sell volumes of second hand residential properties. With Secure Home Purchase we will also buy the properties, removing the risk and responsibility completely from developers, giving them the complete outsource package.”
The launch appears to be perfect timing for would-be Taylor Wimpey customers as the market dips in some areas, making it harder to sell their existing property in order to proceed with the purchase of a new home. The new proposition also decreases the financial risk and cost for homebuilders running and financing their own traditional part-exchange schemes.
Ben Greco, a director of Secure Home Purchase, commented; “Current market conditions are beginning to highlight the risks faced by developers who fund their own part-exchange schemes. Over the last decade, the chance of getting stung by a poor buying decision was relatively low due to consistently rising house prices. In today’s market that is no longer the case and paying too much for a property could mean real losses.”
With Secure Home Purchase buying the properties on behalf of the developer, the normal benefits of swift and certain sales are achieved without the risks and costs associated with accumulating second hand stock. Other significant benefits to the developer come from freeing up the capital and management time required for large numbers of transactions as well as improvements in cash flow and sales forecasting.
Taylor Wimpey’s national sales and marketing director, Kevin Belsham, added; “This new proposition allows us to help customers who have a property to sell to move quickly and without any hassle, whilst at the same time leaving us to focus on our core business of building new homes.”
