New Homes Commentary June 2010
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May's prices suggest a small rise year on year which Smart New Homes is getting quite excited about, however it's clear that prices are better than last year, but they aren't really moving forward at a pace.
The Marketing Director, Steve Lees suggests that it is mortgage lenders holding back new build prices as they are "undervaluing new homes and setting unreasonable lending criteria". He boldy states "mortgage providers are effectively holding homebuyers to ransom".
It's true that mortgage lenders are probably being somewhat overly cautious, especially when it comes to new build. In theory we'd think the banks understood the property market. For some very odd reason, banks were happy to lend on properties which it was clear to professionals were overvalued prior to the credit crunch and now, when new builds are actually very good value for money they are demanding high deposits (up to 40% for new builds).
When you consider what a huge shortage of supply we have of new build properties now and over the next few years ,this seems crazy. They seem to lend when it's reckless and not lend when it's perfectly OK to do so - go figure!
According to Smartnewhomes index, semi detached properties are the most popular followed by townhouses. Simon Bexon from Smartnew homes suggests that "Detached homes on smaller developments within commuting distance of larger regional towns, London or hte South East's airports are holding their own".
Regional Performance
With new build prices overall on the increase this month, it's amazing to see how regionally biased the growth is. Areas such as Greater London which had been growing in price by great guns is now posting a 9.7% DECREASE year on year. Growth areas this month include South West at +10.7% YoY; East Anglia at +8% YoY; Yorks and Humber at +7% and Scotland at +4% YoY.
Areas that are not performing this month include the West Midlands which is down a huge 17% YoY followed by Greater London down 9.7% YoY and the South East, down 5.1% YoY
Want to know more about property prices? Need help buying a new build? Call us on 0845 838 1763 or email enquiries@designsonproperty.co.uk
New Homes Data from Smartnewhomes
| Statistic Measure | Feb 10 | Mar 10 | Apr 10 | May 10 |
| Average new home price | £215,186 | £216,188 | £220,190 | £220,464 |
| Monthly % change | -1.6% | +0.5% | +1.9% | +0.1% |
| Three monthly change | -1.4% | -2.0% | +0.7% | +2.5% |
| Annual % change | -5.6% | -1.8% | -0.3% | +2.1% |
| 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
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