New-build property prices increase

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by Kay Murchie

According to Halifax, Hometrack and Rightmove, property prices have fallen across the country but property website, SmartNewHomes.com, have said new-build property has bucked the trend and increased 0.7% during October.

SmartNewHomes.com said that developers are offering incentives such as paying stamp duty and fully furnished properties which is appealing to buyers. Growth has been led by penthouse properties, which increased by an average of 2.7% in price, with the average property now worth £438,818.

David Bexon of SmartNewHomes.com said young professionals can still afford high quality properties. Penthouses appeal to them and as a result have remained very popular.

Mr Bexon continued that in addition to city buyers, cash rich downsizers are generally unaffected by a depressed market with many opting to buy luxury penthouses off-plan.

Furthermore, prices also rose for semi-detached and apartment properties, with average costs up by 0.6% and 0.4% respectively.

In comparison, prices for townhouses were down by 1.8%, followed by prices for detached properties, which fell 0.7%. However, for cheaper properties, conditions continue to be challenging for buyers. Mr Bexon said affordability at the lower end of the market continues to be a problem.

Many experts say homeowners can expect at least 2 interest rate cuts next year so those looking to progress up the property ladder should be encouraged by this. However, developers are aware of current affordability issues and consequently, are offering various deals and incentives to help these groups of people, Mr Bexon concluded.