New Homes Index - April 2012 - Strong Price Growth For New Homes In Spite Of Recession
The number of new homes coming onto the market continues to climb, bringing greater choice to new home buyers. Annual growth in new homes added stood at 73.5% in March.
However, the volumes are still woefully short of the number of new homes required to meet demand, with London Mayor Boris Johnson acknowledging the need to build tens of thousands more in the capital.
Commenting on the data, Steven Lees, Director of SmartNewHomes, said: "Housebuilders have reported a strong start to the year with unwavering demand from buyers and this is reflected in the strength of new homes prices. The launch of NewBuy and the NPPF in the first quarter of the year have contributed to positive market sentiment and the announcement from HSBC that that they are increasing their maximum loan to value on new build properties is further evidence of this faith in new homes. We are hopeful that many more lenders will follow suit in the coming weeks.
Reports of a double dip recession from the Office of National Statistics (ONS) could take some of the wind out of the property market’s sails. However, developers continue to offer an array of innovative deals and incentives to keep new homes affordable for buyers and we expect demand to continue to underpin prices this year as the shortage continues.”