Prices for new properties buck trends

Prices for new-build property have started to defy the overall trend of the housing market.

The average price for a new-build property increased 0.7 per cent during October, the first increase since July, according to property website SmartNewHomes.com.

This is in contrast to the wider market which has seen prices fall in recent months, with news from the Halifax, Hometrack and Rightmove all suggesting prices across the country have begun to fall.

Incentives offered by home builders, including paying stamp duty, discount prices and furniture packages, have all been working to attract buyers, according to SmartNewHomes.

Growth has been led by penthouse properties, which increased by an average of 2.7 per cent in price – with the average property now worth £438,818.

"City high fliers can still afford high quality properties. Penthouses fit the bill and as a result have remained very popular," said David Bexon, managing director of SmartNewHomes.

"In addition to city buyers, cash rich downsizers are generally unaffected by a depressed market with many opting to buy luxury penthouses off-plan."

Prices also increased for semi-detached and apartment properties, with average costs up by 0.6 and 0.4 per cent respectively.

In contrast, prices for townhouses were down by 1.8, followed by prices for detached properties, which fell 0.7 per cent.

For cheaper properties, however, conditions have continued to be challenging for buyers.

"In contrast, affordability at the lower end of the market continues to be an issue," continued Mr Bexon.

"First-time buyers and those looking to move up the ladder will have been encouraged by the recent news from the Monetary Policy Committee (MPC), which indicated that interest rates look set to come down early next year.

"However, developers are acutely aware of the current affordability issues and have been offering a series of genuine deals and incentives to help these groups," he added.