The data from the SmartNewHomes index also shows that on a quarterly basis new home prices are up by 1% and on an annual basis by 0.2%. Annual growth rose by 0.2% in March.
Overall the index shows that the traditional spring bounce in buying activity has not been as strong as previous years. However, the prospect of improving weather conditions and falling mortgage rates will support buyer appetite for new homes, according to Steven Lees, director of SmartNewHomes.
He pointed out that all the major indices have shown a rise in average house prices in recent months. The general trend shows asking prices rising steadily and it is likely that this positive growth will be translated into further increases over the coming months.
There is some regional variation in prices and growth. Prices in the southern regions have recorded positive growth on a monthly, quarterly and annual basis, with Greater London witnessing the biggest monthly price rise in March of 4.7%.
The North West was the only Northern region to experience a monthly price increase at 1.2%. The East Midlands suffered the largest monthly price drop in the country, losing 3.2%. However, all regions in the UK have seen positive annual price growth. Outside of London, the South West recorded the highest increase at 6.8% growth annually.
Using a three month rolling average, the number of new homes added to the market fell in March. Supply is expected to improve over coming weeks as many house builders have opted to delay the launch of new phases and developments until after Easter.
‘A price rise this month, driven by the success of the London market, is evidence that pent up buyer demand for new homes in the first couple of months of 2013 has underpinned price growth. Growing confidence is also illustrated in positive quarterly and annual price growth, which is likely to be boosted further by the shortage of new homes and fierce competition among buyers,’ explained Lees.
‘The recent figures from the HCA showing it has exceeded its Get Britain Building targets bode well, with 11,000 homes expected to be delivered across 170 sites which have now been unlocked. The revised National Planning Policy Framework (NPPF) comes into force and we are hopeful that this will kick start an increase in development levels across the regions,’ he added.
