New home prices likely to increase

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by Kay Murchie

SmartNewHomes.com believe new-build properties provide an excellent opportunity to buy currently as prices are expected to increase in the spring.

In January, the average cost of a new-build home fell by 0.5%, after a longer-term moderation, SmartNewHomes is expecting new-build properties to rise in the next few months.

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

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

The organisation said the most affordable region for new home buyers is the north with the average price of a new-build property at £207,663. The second most affordable region is the north-west, where average prices are £208,749, according to the organisation.

Furthermore, new build homes in Scotland and Yorkshire & Humberside reported strong price growth in January 2008 which SmartNewHomes believes could be of interest to first-time buyers.

Prices rose by 5% in Scotland during January, indicating renewed buyer confidence in the region.

With average prices in some regions such as the north and the north-west currently lower than they were 12 months ago, buyers prepared to move quickly could secure an excellent deal before the spring, concluded Mr Bexon.