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New Build House Prices March 2011
New build properties appear to be proving fairly resilient versus the rest of the buying/selling sector. Prices had fallen back in January versus previous months, but bounced back well in February. According to Smart New Homes, the 'long term' average of a new build is fluctuating around £217,500, ranging from around £212k up to £222k over the last few years.
This stability in the new build property market suggests that developers are benefiting from only producing what they can sell while buyers aren't being able to get the bargains in this sector so far that they could have done back in the last quarter of 2008. This stability also suggests that the underlying issues of a lack of supply will continue to hold property prices up overall, putting paid to the 'doom and gloom' predictions that the likes of Capital Economics enjoy putting out.
Kate Faulkner's comments on the New Build Property Market
The government needs to be aware though that the policies they are implementing now will affect the future housing stock for the next 10 years, not just the next five and according to The Institute for Public Policy Research (IPPR) they estimate that by 2025 we will have a shortfall of 750,000 homes by 2025 if current building rates remain so low.
To get developers building again, the government needs to be working with them rather than changing the rules of the game, offering councils the opportunity to profit from developing land and a banking sector that is flatly refusing to appreciate the benefit of the new homes industry to the economy by not lending to builders, housing associations nor your every day buyer.
On a regional basis, we do see prices fluctuate quite a bit from one month to the next, probably reflecting the different stock sold. One month an area can be the worst performer, the next the best. This month sees London continuing to be down year on year by a wopping 25%, while other areas aren't really growing that much at all, suggesting a relatively subdued, but stable picture across the property market.
Need to know why you need to be careful when buying a new home? Why some lenders request a higher deposit for some new build properties? Call us on 0845 838 1763 or email enquiries@designsonproperty.co.uk
New Homes Data from Smartnewhomes
| Statistic Measure | Feb 11 | | Average new home price | £219,172 | | Monthly % change | +1.6% | | Three monthly change | -0.7% | | Annual % change | +1.9% |
| Statistic Measure | Aug 10 | Sep 10 | Oct 10 | Nov 10 | Dec 10 | Jan 11 | | Average new home price | £219,629 | £222,561 | £212,103 | £220,654 | £222,069 | £215,786 | | Monthly % change | +0.9% | +1.3% | -4.7% | +4.0% | -0.3% | -1.9% | | Three monthly change | -0.4% | +2.2% | -2.6% | +0.5% | -1.1% | +1.7% | | Annual % change | +1.2% | +4.9% | -1.3% | +1.1% | -0.2% | -1.3% |
| Statistic Measure | Feb 10 | Mar 10 | Apr 10 | May 10 | June 10 | July 10 | | Average new home price | £215,186 | £216,188 | £220,190 | £220,464 | £217,845 | £217,660 | | Monthly % change | -1.6% | +0.5% | +1.9% | +0.1% | -1.2% | -0.1% | | Three monthly change | -1.4% | -2.0% | +0.7% | +2.5% | +0.8% | -1.1% | | Annual % change | -5.6% | -1.8% | -0.3% | +2.1% | +1.4% | +2.5% |
| Statistic Measure | Aug 09 | Sep 09 | Oct 09 | Nov 09 | Dec 09 | Jan 10 | | Average new home price | £217,058 | £212,124 | £214,909 | £218,160 | £220,537 | £218,575 | | Monthly % change | +2.2% | -2.3% | +1.3% | +1.5% | +1.1% | -0.9% | | Three monthly change | +0.6% | -1.3% | +1.2% | +0.5% | +4.0% | +1.7% | | Annual % change | -10.4% | -10.2% | -7.5% | -3.7% | -2.6% | -1.4% |
| Statistic Measure | Feb 09 | Mar 09 | Apr 09 | May 09 | Jun 09 | Jul 09 | | Average new home price | £227,893 | £220,128 | £220,955 | £215,857 | £214,846 | £212,440 | | Monthly % change | +2.8% | -3.4% | +0.4% | -2.3% | -0.5% | -1.1% | | Three monthly change | +0.6% | -2.8% | -0.3% | -5.3% | -2.4% | -3.9% | | Annual % change | -9.6% | -13.2% | -13.0% | -15.3% | -13.7% | -13.6% |
Useful article to read - UK house building levels rise
For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:
Sylvia Tidy-Harris
STH Management Tel +44 (0) 1530 263221
Mob +44 (0) 7970 646872
Fax: +44 (0) 1530 264018
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