The June 2012 LSL New Build Index, exclusively launched on whathouse.co.uk, looks at how the average prices of new build properties across the UK have changed and gives some insight in to the regional new build markets.
James McAuley, Director of LSL Land & New Homes commented: “Comparing average prices in the period June 2010 to May 2011 with June 2011 to May 2012 we see that, whilst there has been some falls, the overall picture looks more positive than when we compared year on year averages last month.
“Pent up demand following the extended Easter break could be a contributing factor to this and the more positive mood of some buyers who are coming to appreciate the benefit that schemes such as NewBuy and Part Exchange can offer.
“Of particular interest is the fact that average prices of detached properties across the UK appear to have improved in response to increased demand for them. One region that has seen this is the South East where detached properties have increased in value by 3% over the last year - a significant rise from the 0.7% decrease reported in last months Index.
“We believe this, to some extent, has been driven by developers who have begun to steer away from the creation of high-density apartments that were popular in years gone by. It is also their ongoing appreciation of the fact that lenders are nervous about the high loan to value mortgages that many hope to obtain on such properties.
“A similar picture can be seen across the UK with flats, apart from in East Anglia, Scotland and Wales, falling in value with prices in the East Midlands, North West and Yorkshire suffering most. In Yorkshire demand for flats and 3 storey town houses has been replaced with demand for 2/3 bedroomed terraces and semi detached new builds with average prices – compared to last month’s Index - moving upwards to reflect this.
“Across the UK too the average prices of semi detached and terraced properties have improved with the East Midlands, West Midlands and Scotland fairing particularly well.
“So, generally, the picture is not looking too bad and, after a rocky Easter bank holiday period, we are experiencing increased interest from buyers keen to make a move. The growing appreciation of First Buy, NewBuy, part exchange and assisted move schemes will, we hope, also bring further positivity to the market from both first and second time buyers.
“Location and property type, however, continue to be key and, as the market continues to change and economic challenges continue, developers must think hard about where and what they build and how to respond best to the buyers out there.”