According to the latest index from Smart New Homes, prices for new builds in regions across the UK have increased by 6% over the last 12 months. Here, we take a look at new homes in SE17, London, and in other areas of England and Wales and ask if new builds are a better option for prospective buyers.
The average price in August 2012 was £234,783, some £13,507 higher than the August 2011 figure.
The evidence presented by Smart New Homes looks pretty convincing, even if they could be accused of being biased. Apparently, it’s not just new homes in SE17 and other areas of London that are bolstering the figures. The company claims that the majority of regions have seen price rises.
So, are prices for new homes in SE17 and new homes in Streatham performing better than, say, new homes in Liverpool? Apparently so, according to the figures. Overall, the monthly figures show that month-on-month, new home prices increased by 4.9% in Greater London, taking the average to £397,394. In contrast, prices dropped by 0.7% in the North West to an average of £169,419.
New homes in Birmingham appear to be performing well if the data is to be believed. Smart New Homes found that the West Midlands was the best performing region, with house prices up by 5.4%, taking the average to £167,917. This could well be the consequence of investment and redevelopment projects and the announcement of the HS2 high speed rail link.
The South West experienced price hikes of 2.6% (£223,395). Average prices increased in the South East by 3.2% (£285,985) and by 0.9% in Yorkshire and the Humber (£181,502). The North East saw a 0.2% rise (£172,330) and Wales reported a 0.1% increase (£188,712). Meanwhile, Scotland saw increases of 2.4%, taking the average price for new homes in the country to £234,491.
It wasn’t just the North West which experienced price drops for new homes. Prices fell by 1.6% in the East Midlands to £191,013 and by 1% in East Anglia, to £216,683.
Steven Lees, director of Smart New Homes, said: “New home prices were stable in August compared with a price correction in the wider market. This is a mark of the unrelenting demand for new homes from buyers, in spite of a summer dominated by the Olympic Games.
Demand for new homes is likely to be further buoyed by FirstBuy, which has received £280million in additional funding, and NewBuy, which has reached 1,300 transactions, as both schemes continue to help buyers purchase a new home amid the ongoing freeze on high loan to value mortgages.”
All of which sounds positive. However, the industry still has a long way to go to meet demand for housing. Mr Lees went on to say: “It will be some time before the industry is able to make a dent in the 223,000 needed each year. For this reason, we expect to see price growth of 2 to 3% this year.”
Using just the above as evidence, it does certainly appear that new homes in SE17, Greater London and the West Midlands present the best option for prospective buyers.
Search My Homes Unlimited for new homes in SE17 and in other regions of England, Scotland and Wales.
Source: Property Wire, Smart New Homes.