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Sunny outlook for new homes

August 4, 2010 15:01
Ridgemont: further two-bedroom apartments now available

ByCharlie Jacoby, Charlie Jacoby

1 min read

New homes are selling well, even as the wider market cools.

The average price of a new home slipped by -1.2 per cent to £217,845 in June, as a number of short-term factors prevented the continuation of the recent steady growth. However, with the three-month change standing at +0.8 per cent and annual growth at +1.4 per cent, underlying market trends remain positive.

Steve Lees, marketing director of SmartNewHomes.com, says: “Summer is traditionally one of the quieter times for the property market, so a slight cooling in the rate of price growth is only to be expected. This is particularly true this year as, following strong price rises in spring driven by an imbalance between supply and demand, June saw a significant increase in stock on the resale market as sellers looked to cash in on potential gains.

“The increase in properties for sale also coincided with the scrapping of HIPs as well as the emergency budget, which will have led some house hunters to re-evaluate their financial situation. Although the net result has been downward pressure on new home prices, it is clear that they are also short-term issues that should not disguise the overall strength of the market. Figures for both the three- month and annual changes point to slow but steady growth in a stable market.”