Price of new homes drops 0.3% in June

The price of a new home dropped 0.3 per cent in June to reach an average price of £260,073.

That is according to research out today from SmartNewHomes.com, which finds the average new property has fallen by £759 from May to June.

Over the last month new homes have seen their prices grow by 1.7 per cent, and a new property is worth 0.6 per cent more than it was a year ago.

The biggest rises were for semi-detached new homes, which experienced growth of two per cent in June to reach £246,554 on average, followed by terraced properties, up 0.6 per cent to reach an average of £245,488.

"With rates seemingly on the up and the severe weather conditions experienced in June extending well into July, I fear we should prepare for a further fall in price over the coming months," commented David Bexon, SmartNewHomes managing director.

"The recent flooding has devastated thousands of homes across the country, with the Department for Environment Food and Rural Affairs estimating the number of homes affected currently exceeds 20,000. For home owners in these areas, any plans for moving will be well and truly on the back burner.

"In addition, fear of another rate rise is still rife among the home owning public, with July’s rise only fuelling further concern. A growing number of existing homeowners are feeling increasingly cautious about taking on any additional debt at such an uncertain time and many first-time buyers are holding off, waiting for more appealing fixed-rate deals before committing to their first mortgage."