Tue, 11 Jul 06
The average price of a new home in the UK in June was £258,581, down 0.5% compared to May.
But the fall was caused by an increasing oversupply of new apartments, said SmartNewHomes.com in their new homes index for July. All other property types increased in value over the month.
Despite apartments being the only property type to fall in price this month their domination of the housing mix (58.6%) has meant just a 1% fall in price has had a negative effect on the overall average cost of a new home.
Over the last three months new properties have fallen by 2.3% and over the year to last June they fell by 1.1% the new homes website said.
Monthly % change
% of houses for sale
The South West remains a popular destination for new home buyers as it continues to experience inward migration. Its popularity can in part be related to house prices in the region, which remain relatively low, despite continued demand. The South West is also a ‘trendy’ destination for those looking to get out of the city with areas such as Cornwall proving popular with retirees and second home owners.
For the first time since the start of 2006 the website saw average new homes prices fall below those experienced at the same time last year. The World Cup has taken its toll as consumers are caught up in the hype that has swept the nation and put any plans to buy on hold, said the firm.
However, the fall in house prices this month is not surprising and follows a similar pattern to that experienced last year. Summer is traditionally a quieter period in the housing market with consumers preoccupied by summer holidays, opting to put off the whole home buying process until September when children are back at school.
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