It is the fourth consecutive month of price increases in the new homes market and the index also shows that annual price growth stands at 6.1%.
The average price of a new home is now £13,123 higher than at the beginning of 2011 and new home prices are higher than they were a year ago in every region.
The most significant year on year growth was in the West Midlands, up 15.4%, followed by Greater London at 13.9% and Yorkshire and Humber at 12.5%.
Most of the UK market benefitted from a strong start to the year, with only Scotland and Greater London seeing prices dip since December.
The index report says that new home values are outperforming prices in the wider market. The number of new homes coming onto the market rose considerably in January, as developments and phase launches which had been delayed over the quiet Christmas period, took place in the New Year.
‘The new homes market has seen a strong start to the year, with a flurry of new scheme launches, encouraging levels of activity from buyers and new mortgage products announced by lenders which are designed to attract customers. January trading statements from leading house builders have been extremely optimistic, reporting a strong start to the selling season despite wider economic uncertainty,’ said Steven Lees, director of SmartNewHomes.
‘We could see a fall in activity at the lower end of the market after 24 March, when first time buyers are again required to pay stamp duty tax on properties under £250,000, but the fact that many developers are offering their own extensions to the stamp duty holiday means it is unlikely to have a serious impact,’ he explained.
‘I am confident that the launch of the NewBuy Mortgage Indemnity scheme later in the spring, which will see the government underwrite potential losses on new build property to help first time buyers borrow up to 95%, will drive demand,’ he added.
The SmartNewHomes New Homes Index is a monthly monitor of all new homes promoted on its site. The index is based on both properties and enquiries on the SmartNewHomes website, and records the price of new homes for sale by region and type of property and is mix adjusted, as well as tracking consumer demand for properties on a monthly basis.
SmartNewHomes is the UK’s leading new homes website, representing 85% of all new homes for sale in England, Wales and Scotland.
