Shortage of family homes still top of the agenda
The average price of a new home fell by 2.3% in May 2009, following the two increases recorded over the three previous months. The monthly drop resulted in the largest year-on-year decline so far recorded in the new homes market, taking annual growth below -15%. However, the price of detached homes increased for the third month running, indicating a growing lack of supply.
Commenting on the data, David Bexon, Managing Director of SmartNewHomes.com said:
“While many of the UK house price indices are now starting to show monthly rises, it is likely to be a little while before we return to sustained price growth across the board. I do believe that the bottom is now being reached in the new homes market, and that the monthly volatility in average prices we are now witnessing is indicative of this correction.
To read the latest New Homes Index in full click here.
Date Published: 01 June 2009
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