In spite of a 9% rise in London’s new home prices at the end of last year, the average price is £18,000 lower than a year ago. According to the SmartNewHomes.com monthly index, the average price of a new home in London in December was £420,983 a 4.1% drop for the same month in 2006.
While other regions have also suffered marginal average price falls or stagnation, London’s average price is still 181% higher than the average first time buyer home of 150,000, (nearly three times the amount), putting this market firmly out of reach for this group.
David Bexon, Managing Director of SmartNewHomes.com said: “While there is no denying that London has outperformed any other region in December, our index shows that new homes are cheaper in London now than a year ago. This could be the deciding factor for families who may have been debating whether to stay in the capital or look to upgrade to a larger family sized home elsewhere.
“During 2008, London will remain a market with pockets of activity such as the Olympic regeneration zone as well as in key areas such as Lewisham, Brent Cross and Elephant & Castle.”
See Also: Press Releases (371)
Date Published: 28 January 2008
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