Annual house price growth was consistent in June at 3.1% and the average price of a new home is now £6,975 more than at the same time last year, the date from the SmartNewHomes July index also shows.
In the first six months of the year the average asking price for a new home in the wider market has increased by £22,175. This compares to £3,383 in the new homes market as house builders continue to price realistically.
All of the regions recorded positive price growth in the second quarter of the year, with East Anglia witnessing the strongest price growth in this period at 5.9%.
The report says that builders such as Ben Bailey is keeping homes affordable in the region through the introduction of its CanBuy scheme which loans buyers a 15% deposit. The scheme is available at the developer's Willow Tree Park development in Downham Market where prices start at £179,995 for a three bedroom house. In June, monthly price growth slipped in only three of the eleven regions. These were the South West, South East and Wales which saw prices dip of 1.3%, 0.6% and 0.2%.
The index also shows that the number of new homes coming onto the market continues on its upward path and follows positive statements from several of the UK’s leading house builders, including Barratt who has reported that their private home completions in the first half of the year were up 16% compared to the same period in 2011.
‘The new homes market performed strongly in the first half of the year, with the average price of a new home up £3,383 since January. However, a new home remains more affordable for buyers than a property in the wider market which has seen nothing short of runaway pricing as asking prices in the wider market have increased by £18,792 more than a new home over the same period,’ said Steven Lees, director of SmartNewHomes.
‘House builders remain acutely aware of restricted finance and continue to call for greater mortgage availability. Their realistic approach to pricing makes a brand new home a more affordable option alongside the many incentives available. New home buyers stand to benefit from long term savings because of their increased energy efficiency and low maintenance costs and this will continue to drive demand for new homes in the second half of the year,’ he added.
