The latest index from SmartNewHomes shows that the average price is now £229,571, meaning the average home now costs £2,473 more than in December 2011.
According to the figures from the firm a relatively flat fourth quarter brought the annual price grown down in the new homes market. It had started 2012 on a strong note with solid price growth but fell off at the end of the year.
‘Strong and sustained demand for new homes, particularly from first time buyers eager to take advantage of the shared equity schemes available from house builders and the government, meant that prices fluctuated by only £10,000 across the year. This compares to £22,000 in the wider market,’ said Steven Lees, director of SmartNewHomes.
‘Growth in the number of new homes coming to market for buyers is a positive marker in a year that saw the government announce countless new measures to get Britain building. We will see during the year ahead whether this talk translates into new homes for many thousands of potential buyers,’ he added.
Using a three month rolling average, the number of new homes added to the market grew by 52% annually in December, which Lees said shows a significant improvement in supply compared to the same time in 2011.
He also pointed out that January is expected to bring a further boost as many house builders opted to delay the launch of new phases and developments until the New Year.
Overall the index shows a mixed picture across the country in terms of prices. Greater London, Yorkshire and Humberside and the North East have all seen positive new home price growth throughout the year. The average price in the North East is now £174,591, an annual rise of 2.5% and a quarterly rise of 0.8%. In Yorkshire and Humberside the average price is £181,612, an annual rise of 2.6% and a quarterly rise of 0.7%.
Greater London has the costliest new homes with an average price of £428,605, up 4% on a monthly basis, 1.9% on a quarterly basis and an annual increase of 6.1%.
Scotland, the North West, the West Midlands and the South West have all seen new home prices fall on an annual basis, down 0.7%, 4.7%, 2.5% and 1.5% respectively. But prices are on the rise in Scotland again, up 0.2% on a quarterly basis and 2.1% month on month. It is a similar picture on the South West with new home prices up 0.9% on a quarterly basis and up 1% on a monthly basis.
But it has been mixed fortunes in the North West and the West Midlands. In the North West prices increased by 0.3% in the last quarter but fell 0.9% in the last month. In the West Midlands they increased 3.2% on a quarterly basis but fell back again by 0.5% last month.
Wales and the East Midlands both saw new home prices rise during the year but they have fallen back in the last month by 0.5% and 0.1%.
