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New Built Houses

New Build House Prices December 2010

November was a surprisingly good month for developers. Property prices bounced back from October's lows to an average of £220,000. This move back upwards according to Steve Lees, Marketing Director of Smartnewhomes.com is due to:-

“Many developers will have priced aggressively in October to tempt potential buyers with the possibility of moving in before Christmas. In November, however, the timescale becomes too short and so those deals would have ended, nudging the average price of a new home back to the level of the recent trend."

The much needed increased stock from September is therefore being snapped up by those keen to move and realising that property prices aren't likely to move much over coming months, so they might as well buy now and get settled for the start of 2011.

Overall though, prices last November were around £218,000 and £220,000 in December 2009, so, as with the re-sale market, prices remain fairly stagnant year on year.

The outlook for 2011
2011 should be a continuing good market for New Build properties. Although bear in mind from a buyer's perspective Steve Less says:-

"Only a small number of lenders are providing loans for new build properties and all prospective buyers should make use of mortgage advice available through developers’ sales offices".

In truth, new builds are a good buy for the future. Likely price hikes as soon as banks have balanced their books will rise and there just won't be the new build stock to go with it. It'll take a good six months or year of price rises for developers to 'upsize' their businesses again, in the meantime, those with fairly recently finished new builds could do well to secure a property now and then look at re-selling in a few years time, or have the satisfaction of knowing they bought when prices were at rock bottom and other new build buyers are having to pay the normal 10%+ applied to premium properties.

Top performing areas for November switched back to London (+27.5% YoY) and the South West (+11.5% YoY) and the East Midlands just managed to stay positive (+0.3%).  

Most areas however suffered versus the previous year, especially the West Midlands (-26.1% YoY) and a previously good performer, Wales (-12.8% YoY). Scotland (-5.1% YoY) still seems pretty much to hold it's own and as a region continues to do well in the overall property market.

Top Tip:
NEVER buy a new build property without an independent snagging survey and have an independent solicitor (ie one NOT recommended by the developer) check your contract for you! Need to know why you need to be careful when buying a new home? Why some lenders request a higher deposit for some new build properties? Call us on 0845 838 1763 or email enquiries@designsonproperty.co.uk

New Homes Data from Smartnewhomes

Statistic MeasureAug 10Sep 10Oct 10Nov 10
Average new home price£219,629£222,561£212,103£220,654
Monthly % change+0.9%+1.3%-4.7%+4.0%
Three monthly change-0.4%+2.2%-2.6%+0.5%
Annual % change+1.2%+4.9%-1.3%+1.1%

Statistic MeasureFeb 10Mar 10Apr 10May 10June 10July 10
Average new home price£215,186£216,188£220,190£220,464£217,845£217,660
Monthly % change-1.6%+0.5%+1.9%+0.1%-1.2%-0.1%
Three monthly change-1.4%-2.0%+0.7%+2.5%+0.8%-1.1%
Annual % change-5.6%-1.8%-0.3%+2.1%+1.4%+2.5%

Statistic MeasureAug 09Sep 09Oct 09Nov 09Dec 09Jan 10
Average new home price£217,058£212,124£214,909£218,160£220,537£218,575
Monthly % change+2.2%-2.3%+1.3%+1.5%+1.1%-0.9%
Three monthly change+0.6%-1.3%+1.2%+0.5%+4.0%+1.7%
Annual % change-10.4%-10.2%-7.5%-3.7%-2.6%-1.4%

Statistic MeasureFeb 09Mar 09Apr 09May 09Jun 09Jul 09
Average new home price£227,893£220,128£220,955£215,857£214,846£212,440
Monthly % change+2.8%-3.4%+0.4%-2.3%-0.5%-1.1%
Three monthly change+0.6%-2.8%-0.3%-5.3%-2.4%-3.9%
Annual % change-9.6%-13.2%-13.0%-15.3%-13.7%-13.6%
 
Useful article to read - UK house building levels rise

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit
ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
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Fax: +44 (0) 1530 264018


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