New build numbers must increase
The latest figures from SmartNewHomes reveal that new home prices are expected to rise by 1 – 2% in 2013.
Steven Lees, Director at SmartNewHomes, said: “The new homes market is much leaner than it was and is well positioned to continue weathering the wider economic storm, which is likely to continue through 2013.
“Demand for new homes is still strong and prices have fared well in 2012, with growth of around 3% expected at the end of this year.”
Mr Lees said that the industry is yet to see a significant increase in the number of new homes coming to market, increasing the already large rift between supply and demand.
He said that he hoped that numbers would pick up in 2013 saying: “This is essential if we are to ever bridge the growing shortfall.
“However, the Localism Bill remains the new-look planning system’s ‘Achilles heel’ with the potential to undermine the drive for more new homes if local communities reject development without careful consideration.”
Mr Lees stressed the importance of mortgage finance saying that increased numbers of new homes will only be of value if finance is available.
He said that FirstBuy and NewBuy will both schemes run long into 2013 and 2014, and homeowners are expected to start to feel the benefits of the Funding for Lending scheme.