New-build property prices in London up 21.6%

The price of a new-build property in central London increased by some 21.6 per cent during the previous three months – according to new research from SmartNewHomes.com.

Although prices dropped slightly during January – down 2.1 per cent on the level recorded in December 2007 – prices have shown robust growth over the longer term.

According to the SmartNewHomes monthly index, the average price of a new home in the capital in December was £411,981.

This is some £53,801 higher than three months ago in October 2007 – representing the biggest quarterly increase in two years.

"Our index shows the price of a new home in London has increased dramatically over the last three month period, proving this area remains competitive and is developing a strong resilience," said David Bexon, managing director of SmartNewHomes.

"Demand is still strong among the capital’s buyers, many of whom are in full employment and have considerable equity in their existing properties."

East Anglia and Yorkshire & Humberside also saw marginal price increases of 0.6 per cent and 3.5 per cent respectively over the last three months.

However, the fortunes of these regions were in sharp contrast to those in the rest of the country – with much of the UK recording a falls over the same period.