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What is the outlook for new-build prices?

In contrast to the average homeowner, house-builders’ operational survival directly depends on their ability to sell their properties. Accordingly, house-builders will be more willing to drop property prices than existing homeowners will be. Effectively, they are forced sellers. We think that the underlying value of new-build homes will fall by 40% - 45% from peak to trough, compared to 35% in the wider market.

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