New homes have shot up in price by 6% in the last year – an average of £13,507.
The website smartnewhomes said that the average asking price of a new home in August this year stood at £234,783 – way above the Land Registry’s average price of £163,376 for the same month.
Reporting last Friday, the Land Registry – which works to a formula based on resales – said that house prices did not change between July and August and are just 0.7% ahead of last year.
Even in London, house prices did not change over the month, although annual house price inflation in the capital is 5%.
The Land Registry also released its most up to date housing transaction data, showing an average of 52,715 transactions per month from March to June.
This was slightly up from the average of 51,044 per month over the same period last year.
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Comments
Twti1234, not got to 5 yet mate? now muppett, if the builders are not selling anything why have all not gone bust? Even in your silly world you should know a short supply of property will hold prices up so you sad hope of a crash wont come along. Now trot on.
I agree with Lance that this just shows that new-build houses are increasingly focused on the upper end of the market, partly because of mortgage availability issues and because developers are being squeezed so hard by S106 and affordable homes taxes.
Even though the whole country benefits from new roads, school, affordable homes and so on, the vast proportion of the costs have been imposed on the new-build construction market. Meanwhile Nimby existing local residents don't pay a penny, and think this is the right beacuse of the "burden" of having new homes built in their area. If the public insists on making the housing industry pay for national infrastructure and social housing policies, the builders are inevitably going to build fewer houses and focus on the most profitable and higher-quality ones.
The builders can ask what ever they want but they won't sell unless you are being a hoodwinked Chinese investor or one of those gullible 250 Newbuy purchasers.
Actual sold prices continue to fall, Nationwide down today.
Might this just possibly have something to do with all the money developers are supposedly pouring into subsidised schemes like NewBuy?
Good point Slappy, thanks would never have spotted that, just a PR story.
Here you are comparing asking prices to sold prices. again! So Ray, no I dont think they will.
We need more details about this average price increase to see if the average size of the homes has increased before we can regard it as an indication that new home values have really risen.
We've seen more builders aim for the upper end of the market where buyers are less dependant on mortgage supply or selling their own house.
If these price increases for new homes are in fact correct, will it eventually feed through for prices in the second hand market?