This is the Christmas of the big discount: shops may be offering reductions of 25 per cent but big-name housebuilders are slashing prices by up to 50 per cent for customers who know how to haggle.

These cuts are replacing incentives such as free cars. Banks have been using giveaways of this type as an excuse to reduce the amount that they were prepared to lend - bad news for buyers and developers alike.

“If a buyer was given a car worth £90,000 with a property worth £200,000, that property may well have been revalued at £110,000 for mortgage purposes,” says Stuart Law, of Assetz, the property investment firm.

Investors who are buying four or more units in new-build developments are now being given discounts of 30-50 per cent; bulk buyers are getting as much as 75 per cent off prices, or so it is rumoured.

But if you are buying only one property you can still get a good deal. Have your finance organised before negotiations begin and be prepared to walk away from the transaction. If you are buying the property to rent it out, do your sums first. A bulk-buyer landlord purchasing within the same development may be prepared to set rents at a lower level than you can afford, says Melanie Bien, director of the mortgage broker Savills Private Finance.

New first-time buyers may be able to obtain a discount and some other incentive but the rule about reading the small print has seldom been more important. It is also vital to find out what prices similar properties have fetched locally in the past few weeks: data any older than this are useless.

1 Rent before you buy

“The "save a deposit" scheme on offer at various developments, including Wolverton Park, Milton Keynes (one-bed flats from £143,000; knightfrank.com), is an excellent, transparent choice for first-time buyers,” says David Marsden, head of real estate at the legal firm Matthew Arnold & Baldwin. If tenants choose to buy after a 12-month rental period their rent goes towards a deposit and the amount is matched by the developer.

2 Three-year price guarantee

Another reasonable bet is Barratt's three-year price guarantee (available at Willow Grange, Watford; one-bed flats from £190,000; barratthomes.co.uk). If you sell your house within three years and the value is lower than the price you paid, Barratt will refund the difference up to a maximum of 15 per cent.

3 Rental guarantee

Some incentives could offer a temporary safety net - such as the “guaranteed minimum income on buy to let” properties (available from Dandara at Spectrum, Manchester; studios from £116,950; dandara.com).

4 Weekend trial

Other incentives include “try before you buy”, at Great West Quarter, Brentford. If you stay in an apartment for the weekend, Barratt will reimburse your reservation deposit if you don't like it (studios from £149,995; barratthomes.co.uk).

5 Discount deals

Alternatively, if you simply want a straight no-frills discount, Waterside Heights, at Dickens Heath, Birmingham, is offering 20 per cent off some penthouse flats until the end of January 2009 (one-beds from £149,950; knightfrankcom ).

6 Part Exchange

Barratt claim that this is their most popular incentives, accounting for 20 per cent of their recent sales. It’s available at various developments including Priory Meadows on the Isle of Sheppey. If your property is worth more 30 per cent more than the one you are exchanging it, Barratt/Ward Homes will pay the difference in your mortgage costs up to the value of £1000 a month. (Two-beds from £154,995; www.wardhomes.co.uk )

7 Guaranteed minimum income on holiday lets

White Sand, near Rye. Ward Homes will guarantee investors the first year’s rental, up to a maximum of £10,000 on selected properties. (Two-bed cottages from £185,000; www.wardhomes.co.uk )

8 Free HIP

At Hornbeams in Surrey, you can also get park exchange, and the developer will also pay for your estate agent fees and your Home Information Pack. (Three-beds from £269,995 ; www.dwh.co.uk )

9 Money off

Spectrum in Manchester is offering £800 towards your mortgage for 12 months. (Studios start at £116,950; www.dandara.com )

10 Stamp Duty Paid or 5% deposit paid

At the Mulberries near Bishop’s Stortford in Hertfordshire you can choose between the two. Since most lenders will allow a 5 per cent incentive without revaluing, you don’t need to worry about it affecting your mortgage. (Four-beds from £329,995; barratthomes.co.uk )

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