New builds reach record levels
Published: 21-Jun-2007
The typical cost of a new build property in the UK reached record levels in May, new research suggests.
According to property website SmartNewHomes.com, the average cost of a new build home in the UK rose by 1.3 per cent in the month to reach £260,832.
Demand for these properties was strong across the UK, but particularly buoyant in East Anglia and the south-west - where prices increased 12 per cent and 12.2 per cent respectively.
New house builds were approaching the £260,000 mark towards the end of 2006 but prices had dropped somewhat in the first quarter of 2007.
"May proved to be a record month for new homes and while I would expect the impact of May's interest rate rise to filter through into June’s new home prices, the market has shown a clear indication that the slow start to the year is now behind us," explained David Bexon, the managing director of SmartNewHomes.com.
"The popularity of detached and semi detached new homes is evident in their strong price growth over the last year, while apartments, particularly in London have fallen in price - reinforcing calls for more affordable family homes among the new homes mix."
Yesterday (June 19th), it was revealed that the Bank of England only narrowly voted in favour of maintaining interest rates in June, making it likely that interest rates will increase again in the near future.
