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.
- An end in sight for PPI calls as financial watchdog sets 2018 complaints deadline
- Why the price of oil has “changed for a generation”
- Leading trade body calls for single rate of tax relief on pensions at 25% or 33% as current system "benefits the rich"
- Avoid a Hallowe'en horror by remembering to switch energy deals warns Gocompare
- Bank account review - Which? calls for compensation for customers suffering poor service
- Lloyds shares to be offered to the public at a discount
- Virgin to offer half price refund for West Coast trains more than half an hour late
- Confidence in house price growth remains robust despite the threat of higher interest rates
- Employers attack training levy as 'little more than a tax on business'
- Average rate offered by easy access ISAs collapses to its lowest on record