New homes market performing strongly

According to the SmartNewHomes index the average price for a new home in June was £232,292.

The index records the price of new homes for sale by region and type of property and is mix adjusted, as well as tracking consumer demand for properties on a monthly basis.

This figure is down 1.2% from May but up 0.4% from last quarter. This marks a 3.1% annual increase.

East Anglia saw the highest regionally growth with a 5.9% increase from last quarter.

Steven Lees, director of SmartNewHomes, said:

“The new homes market performed strongly in the first half of the year, with the average price of a new home up

ï¿¡3,383 since January.

“However, a new home remains more affordable for buyers than a property in the wider market which has seen nothing short of runaway pricing as asking prices in the wider market have increased by ï¿¡18,792 more than a new home over the same period.

“Housebuilders remain acutely aware of restricted finance and continue to call for greater mortgage availability.”

Mr Lees said that realistic pricing from builders was making new homes a more affordable option.

As well as lower purchase costs Mr Lees pointed out the long term savings from more energy efficient homes.  

As well as an increase in prices, Barratt Homes has reported a 16% increase in completions on new homes year on year. 

Today's Conveyancer