Twitter Facebook RSS FEEDS

Price of new homes to rise 10%

Wednesday, 21 June 2006 12:00 AM

The average price of a new home is expected to rise by ten per cent over the next twelve months.

The prediction by homebuilders means that if you are looking for a new home, now could be a good time to buy.

A poll of builders, carried out by SmartNewHomes.com, reveals a renewed confidence in the housing market, with 70 per cent predicting price increases during the next year.

This is on the back of a steady increase in new house prices since the start of 2006 amid increased demand for new properties.

After falling for most of last year, the price of a new home has increased in every month since February, including a three per cent rise in March and a 1.4 per cent increase in May.

The average price of a new home now stands at £259,989, compared to £256,648 in May 2005.

Homebuilders cite affordability as the most important issue facing the new homes industry, and have therefore welcomed the government's plans - particularly the £60,000 house - to help those struggling to get on the property ladder.

David Bexon, managing director of SmartNewHomes.com, said: "We are very aware that affordability is an important issue, in particular for first-time buyers, and I would strongly agree that the government's competition for a £60,000 house could steer developers in the right direction, offering a more affordable solution for some buyers.

"I would also advise buyers who may be struggling to afford a new property to consider the other alternatives on offer.

"One option is to consider shared equity; this is available from housing associations and some developers and helps buyers to take the first step onto the property ladder."

Related stories

Buyers need to earn £46,500 to get on the bottom rung of the property ladder in rural areas, says Hometrack.

Rural homes command a premium price

Buyers need to earn £46,500 to get on the bottom rung of the property ladder in rural areas, says Hometrack.

Price of terraced homes rose £118 a day over the last decade, says Halifax survey. Image: Thinkstock

Terraces see highest house price rise

Price of terraced homes rose £118 a day over the last decade, says Halifax survey.
Planning reforms will deliver desperately needed new homes not concrete over countryside, says government. Image: Thinkstock

Government challenges new homes ‘myths’

Document challenges claims by campaigners that planning reforms will be a developer’s charter.

 RIBA says property buyers are denied space in cramped new build homes. Image: Thinkstock

Architects attack ‘shoe box’ new homes

RIBA says property buyers are denied space in cramped new build homes.
Older houses are often in more demand as there are far fewer of them. Image:Liquid

Pre-1919 homes see biggest house price rise

Demand and scarcity pushes up prices for homes built before First World War over last 25 years.

House prices in market towns have risen by £1,000 a month on average over the last decade, say Lloyds TSB. Image: Thinkstock

Market towns enjoy £1,000 a month house price rise

Over the last decade house prices in market towns have risen by £1,000 a month on average say Lloyds TSB.
Graduates throwing hats into air

Property values rise in new university towns

Property prices in towns where universities were established after 1960 have jumped from £91,612 to £155,953 in the last ten years.

 London is propping up UK house prices. Image:Thinkstock

Asking prices for homes reach new all-time high

National average beats previous high set in May 2008 but London and South West lead market, says Rightmove.
Falling prices and high moving costs leave people who bought their first home in 2007 £11,000 short of being able to move. Image: Thinkstock

Would-be second-time buyers trapped in their homes

Falling prices and high moving costs leave people who bought their first home in 2007 £11,000 short of being able to move, says HSBC

 Row of terraced houses in London

Rise in mortgage use to buy West End homes

There has been a significant rise in the proportion of people using mortgages to buy properties in London’s West End.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.