Prices of new homes have increased in most parts of the UK over the past 12 months, according to reports on Property Wire.
New homes in London have seen the most significant price increases. Over the past year, Greater London has recorded a 7.2% increase in prices. The average price for a new home in London now stands at £359,804. The national average in April was £226,859 – a 3.2% increase year-on-year.
New homes in Welwyn Garden City and other affluent areas of the south east rose by 1.4% over the past year, 2.9% quarterly and 0.3% compared with March. The average price of a new home in the south east is now £266,707.
Data from SmartNewHomes has also revealed that the number of new homes on the market has doubled over the past year.
Although there has been positive price growth over the past year, the monthly figures paint a different picture. For example, prices for new homes in London were actually down by 3.5% compared with March. Having said that, they were up by 3.2% on a quarterly basis.
On the whole, prices in April were down 1.9% compared with March and 0.9% quarterly.
This is thought to be partly due to the economic crisis in the Eurozone, which has affected buyer confidence.
Steven Lees, director of SmartNewHomes, commented: “New home prices paused for breath in April, slipping back from a 42-month high in March as less than optimistic economic forecasts and the ongoing trouble in the Eurozone curbed buyer activity.”
As ever, regional variations painted a more realistic picture about the state of the new homes market as a whole. Scotland is reportedly seeing increases in the value of new homes. The average price of a new home in Scotland in April was £231,012 – up 4.9% compared to March.
Interestingly, both the South West and the North West saw annual declines of 8% and 6.1% respectively.
Source: Property Wire.