Developers contribute to market correction with further price cuts
The average price of a new home fell for a fifth consecutive month in October, taking new home prices to £232,386 – down 1.6% since September. In October the rate of annual house price growth in the new homes market showed one of the sharpest monthly declines of 2008 so far.
Commenting on the data, David Bexon, Managing Director of SmartNewHomes.com said:
“New home prices continued their downward progression in October, with annual growth falling to its lowest level recorded so far this year – now 9% down on the average price recorded in October 2007. However, the monthly rate of decline slowed last month, showing that new home prices are not in a complete freefall, but a period of correction, as developers look to sell their existing stock.
To read the latest New Homes Index click here.
Date Published: 01 November 2008
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