Rise in the price of new houses

Monday 24 May 2010 00:00 BST
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The average price of a new home rose by 1.9 per cent in April, taking the annual rate of decline to its lowest rate for two years, according to a property website.

David Bexon, the managing director of SmartNewHomes.com, said: "The continued steady growth in the price of a new homes in April shows the strength of demand in spite of election uncertainties which may have led some buyers to hold fire on a new home purchase." After the uplift in April, the average price of a new house is £220,190, which brings the annual change to a fall of just 0.3 per cent – the lowest since April 2008.

The demand price for new property – the amount that prospective purchasers are looking to pay – also rose in April by 0.6 per cent to £254,949, which is 14 per cent higher than the average stock price.

In the wider market, Halifax said UK house prices were flat in April and the Bank of England said mortgage approvals fell 18 per cent in the first quarter of 2010.

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