New build property prices down 0.3%

Friday, 25 January 2008 12:00 AM

The average cost of a new build property fell by 0.3 per cent over December, according to research released by SmartNewHomes.com.

The small fall represents the first drop since September and the market is otherwise robust - with prices up by 1.2 per cent when averaged out over the final quarter of 2007.

According to the organisation the drop is seasonal and was expected over the festive period.

A new build property now costs £259,995 in the UK.

Penthouse properties have performed strongly over the period, with prices up by an average of 5.2 per cent in a sector unaffected by recent subprime market turbulence.

However, there were falls in the cost of detached properties and apartments.

Across the country there was strong evidence of regional variation.

Prices looked precarious in the north-west, where the cost of a new build home fell two per cent over December and 7.1 per cent over the quarter of 2007.

Large falls were also recorded in Scotland during December, with prices down seven per cent, as well as in the north-east (down 6.7 per cent), and the East Midlands (down 5.5 per cent).

In comparison London and the south-west appeared immune to wider falls in December, with prices up by nine per cent in each region.

Growth of 3.1 per cent was recorded in Wales over the month, while East Anglia saw prices rise 2.6 per cent.

"While we might be heading for a period of stabilisation, there is no denying that East Anglia and Wales have been outperforming other areas and playing catch up with more expensive regions," said David Bexon, managing director of SmartNewHomes.

"Inward migration into these areas has been strong proving that it is popular with commuters and second home buyers, with migration levels at one per cent in both areas where prices are still more affordable than London property."

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