SmartNewHomes.com’s New Home Index figures for December 2008:
December 2008 new home price: £226,409
Annual decrease: -11.6%
Monthly change: 0%
Decrease from new home price peak (£259,675 – July 2007): -12.8%
David Bexon, Managing Director of SmartNewHomes.com, comments in response to the latest Nationwide house price figures:
“While the re-sale market recorded a sharp fall in house prices in December, the new homes market remained static. The decline in new home prices over the past year as a whole was also less substantial than the decline recorded in the re-sale market, with areas such as Scotland reporting minimal falls.
“New homes are still being marketed at a higher value than re-sale property, and continue to command a premium from buyers who are keen to take advantage of the excellent incentives developers are currently offering to get people moving.
“Regardless of the current climate there are still people out there who want or need to move, and developers are playing a key role in enabling these buyers to move up or even enter the market.”
Pent up demand will support new home prices in years to come
Bexon adds:
“Ultimately, a significant number of new homes will need to be built in order to satisfy the country’s pent-up demand for housing, but the current lack of finance is hindering developers’ ability to build our future homes. New home buyers are set to benefit from a likely increase in prices over the next three or four years, as the consequences of the strangled housing supply come to the fore.”
See Also: Press Releases (371)
Date Published: 06 January 2009
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