New-build property prices expected to rise

Tuesday, 4 March 2008 12:00 AM

Now could be the perfect time to purchase a new-build property, with prices expected to pick up in the spring, according to SmartNewHomes.com.

While the average cost of a new-build home fell by 0.5 per cent in January - following a longer-term moderation - the property portal expects prices in the sector to increase during the coming quarter.

"Despite a slow start to the year, new home prices are likely to pick up over the coming months, as buyer confidence returns, fuelled in part by a series of further interest rate cuts which I would expect to see commencing as early as March," said David Bexon, managing director of SmartNewHomes.com.

According to the organisation the north starts the year as the most affordable region for new home buyers.

The average price of a new-build property in the region stands at £207,663.

However, it is closely followed by the north-west, where average prices are £208,749, down on the same period of 2007.

Scotland and Yorkshire & Humberside may also be areas of interest for buyers, with both recording strong price growth for the first month of 2008.

Prices increased by as much as 5.1 per cent in Scotland during January, suggesting renewed buyer confidence in the region.

However, typical prices in Scotland are now in excess of £250,000 - making it the most expensive region to buy a new home outside of London and the south.

"The current dip in prices across the new homes market makes now an excellent time to buy," continued Mr Bexon.

"With average prices in some regions such as the north and the north-west currently lower than they were a year ago, buyers prepared to move quickly could secure an excellent deal before the spring."

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