According to the SmartNewHomes.com monthly index, the average price of a new home is up 0.7% on last month. This is the first rise since July this year with the average house price at £258,760, up 0.7% on the same time last year.
However, while an oversupply of apartments in the market has led to minimal average price rises, penthouses seem to have escaped the winter blues with average prices showing the highest monthly rise at 2.7%. Higher end purchasers who have not been so affected by interest rate rises over the past 15 months are still buying penthouses, which are achieving record prices. This market has shown a monthly growth in October, achieving an average price of £438,818.
David Bexon, Managing Director of SmartNewHomes.com said: “City high fliers can still afford high quality properties. Penthouses fit the bill and as a result have remained very popular. In addition to city buyers, cash rich downsizers are generally unaffected by a depressed market with many opting to buy luxury penthouses off-plan.
“In contrast, affordability at the lower end of the market continues to be an issue. First-time buyers and those looking to move up the ladder will have been encouraged by the recent news from the Monetary Policy Committee (MPC), which indicated that interest rates look set to come down early next year. However, developers are acutely aware of the current affordability issues and have been offering a series of genuine deals and incentives to help these groups.”
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Date Published: 26 November 2007
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