New Build House Prices March 2011

New build properties appear to be proving fairly resilient versus the rest of the buying/selling sector. Prices had fallen back in January versus previous months, but bounced back well in February. According to Smart New Homes, the 'long term' average of a new build is fluctuating around £217,500, ranging from around £212k up to £222k over the last few years.

This stability in the new build property market suggests that developers are benefiting from only producing what they can sell while buyers aren't being able to get the bargains in this sector so far that they could have done back in the last quarter of 2008. This stability also suggests that the underlying issues of a lack of supply will continue to hold property prices up overall, putting paid to the 'doom and gloom' predictions that the likes of Capital Economics enjoy putting out.

Kate Faulkner's comments on the New Build Property Market
The government needs to be aware though that the policies they are implementing now will affect the future housing stock for the next 10 years, not just the next five and according to The Institute for Public Policy Research (IPPR) they estimate that by 2025 we will have a shortfall of 750,000 homes by 2025 if current building rates remain so low.

To get developers building again, the government needs to be working with them rather than changing the rules of the game, offering councils the opportunity to profit from developing land and a banking sector that is flatly refusing to appreciate the benefit of the new homes industry to the economy by not lending to builders, housing associations nor your every day buyer.

On a regional basis, we do see prices fluctuate quite a bit from one month to the next, probably reflecting the different stock sold. One month an area can be the worst performer, the next the best. This month sees London continuing to be down year on year by a wopping 25%, while other areas aren't really growing that much at all, suggesting a relatively subdued, but stable picture across the property market.

Need to know why you need to be careful when buying a new home? Why some lenders request a higher deposit for some new build properties? Call us on 0845 838 1763 or email

New Homes Data from Smartnewhomes

Statistic MeasureFeb 11
Average new home price£219,172
Monthly % change+1.6%
Three monthly change-0.7%
Annual % change+1.9%

Statistic MeasureAug 10Sep 10Oct 10Nov 10Dec 10Jan 11
Average new home price£219,629£222,561£212,103£220,654£222,069£215,786
Monthly % change+0.9%+1.3%-4.7%+4.0%-0.3%-1.9%
Three monthly change-0.4%+2.2%-2.6%+0.5%-1.1%+1.7%
Annual % change+1.2%+4.9%-1.3%+1.1%-0.2%-1.3%

Statistic MeasureFeb 10Mar 10Apr 10May 10June 10July 10
Average new home price£215,186£216,188£220,190£220,464£217,845£217,660
Monthly % change-1.6%+0.5%+1.9%+0.1%-1.2%-0.1%
Three monthly change-1.4%-2.0%+0.7%+2.5%+0.8%-1.1%
Annual % change-5.6%-1.8%-0.3%+2.1%+1.4%+2.5%

Statistic MeasureAug 09Sep 09Oct 09Nov 09Dec 09Jan 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 MeasureFeb 09Mar 09Apr 09May 09Jun 09Jul 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:-
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