With all the turmoil in the housing market, should you be looking at new build properties to buy? We investigate the market.
By Gordon Miller
Depending on whose statistics you read, the average house price fell by between 12% and 16% in 2008. The Land Registry, which bases its statistics on residential property sales completed and is generally three months in arrears, noted a 12.2% decline; the Halifax BS said prices fell 16.2% in 2008. Another large building society, Nationwide, called the fall in the average house price last year at 15.9%.
The average house price is now £158,275, if you take the mean from the three sources. At the peak of the market in October 2007, the average house price had just topped the £200,000 mark. The peak to trough decline to date is somewhere between 17 to 21%, depending on whose statistics you read. In one sector of the market, however, house prices still exceed £200,000. Namely, new build homes.
The SmartNewHomes.com New Home Index figures for December 2008 reveals that the average new house price is £226,409. The figure is down 12.8% from the new house price peak of £259,675, recorded in July 2007. Interestingly, the 2008 annual decline was 11.6% (less than even the most optimistic all properties statistic from the big three mentioned above) and the monthly change November to December was 0%.
David Bexon, Managing Director of SmartNewHomes.com, said: 'While the re-sale market recorded a sharp fall in house prices in December [average 2.2% decline], the new homes market remained static. The decline in new home prices over the past year as a whole was also less substantial than the decline recorded in the re-sale market, with areas such as Scotland reporting minimal falls.'
Bexon notes that new homes are still being marketed at a higher value than re-sale property, and continue to command a premium from buyers who are keen to take advantage of the excellent incentives developers are currently offering to get people moving.
He said: 'Private housebuilders throughout the country are currently offering some of the best opportunities for homebuyers to get on the property ladder seen in recent years, with thousands of deals available to help make home buying more affordable and accessible.'
Mortgage information from 4Homes
Affordable Housing Schemes For First Time Buyers
Affordable Housing: What's On Offer To Buy?
Mortgages For First Time Buyers
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