The annual decline however, has fallen for the eighth consecutive month, and now stands at -1.4% and looks set for a return to positive growth in the spring.
David Bexon, Managing Director of SmartNewHomes.com said:
“The slight fall in the average price of a new home during January should not detract from the encouraging recovery that has been made by the new homes market, which looks set to resume positive growth in the coming months.
“The new year has seen a steady stream of notable news from leading housebuilders. Persimmon, Barratt, Miller, Bovis, Bellway and Taylor Wimpey all issued positive trading statements in January and are likely to receive further impetus in the coming months as final decisions are made over the allocation of Kickstart funding.
"As well as benefitting from public money, developers are also proactively seeking their own solutions to allow them to progress stalled sites. A good example of this is Galliford Try Homes’ recently announced buyout of its joint ventures with Bank of Scotland, which is set to drive forward their expansion plans.
“However, amidst these upbeat reports, the elephant in the room remains the election, which looms larger every day. Significant concerns persist over the housing policies of both the main parties and their seeming inability to come up with credible and workable solutions.
“What is clear is that, whoever is in power by the summer, stimulating production of new homes must be a priority. The historically low number of new starts in 2009 is a serious concern for the economy as a whole. Housebuilders are anxious to meet the ever-increasing consumer demand for new homes. Politicians and planners need to make it easier for the industry to meet this demand.”
January 2010
- Average new home price: £218,575
- Monthly % change: -0.9%
- Three monthly % change: +1.7%
- Annual % change: -1.4%
