New Build houses see prices rise by 12 per cent in five years though North South divide persists
- 29 April 2013
The average price of newly built houses and flats in the UK has shot up by 12% in five years with the average price now £233,822 according to research from Halifax.
The result equates to a 9% rise above the UK average house price for all properties, says the analysis. Halifax found that nationally, there has been an increase of 40% from £166,473 over the past decade while regionally, the biggest riser over the same period has been in Greater London where the average price for a new home has risen by a massive 57% to £415,540.
The north-south divide is as prevalent as ever in the price of the new homes market as it is in the overall market. Over the past five years, more than half of UK regions saw the average price of new homes fall, with the north experiencing the greatest fall of 10% to a mean price of £157,190. In 2012, flats, at 37%, were the most popular type of new property sold, followed by terraced homes at 24%, and detached properties at 23%. Yorkshire and the Humber had the greatest proportion of terraced properties sold, at 30%, with Greater London seeing the highest proportion of sales of new build flats in 2012, at 88%.
Craig McKinlay, new mortgages director for Halifax says: “In a relatively flat housing market, the new homes market has changed enormously over the past five years. We have seen a lot of positive sentiment towards the new homes market, with various schemes launched to get the house building industry moving and changes in policies and deposit requirements allowing shared equity buyers to participate more fully in the new build market.”
In March 2012, the Government launched its so-called NewBuy Guarantee scheme to help people with smaller deposits, to secure up to a 95% loan-to-value mortgage on new-build properties from participating builders in England.
- The Manchester United and David Moyes saga is all about the debt and leverage
- What has happened to food and energy prices and inflation in 2014?
- Both the Bank of England and the UK Public Finances are having a Mad Hatters Tea Party
- Invesco Perpetual's Mark Barnett on where UK equities go from here
- AstraZeneca gets a Pfizer boost
- Mindful Money's weekly share-tips: Sports Direct, Reed Elsevier, Unilever, William Hill and WPP
- The unanswered question - could new mortgage lending rules restrain house prices - outside London at least?
- Gap between investor income expectations and actual returns widens
- Despite greater pension freedom retirees are set to see their income collapse
- Lower earners and self employed may fail to get mortgages as big lenders' computerised decisions apply tougher lending rules