New home shortage worsens in UK

The average price of a new home fell by -0.1 per cent in September to £221,276.

In the third quarter of 2011, prices were down -1.8 per cent and decreased -0.6 per cent annually.

Commenting on the data, Steve Lees, Director of SmartNewHomes, said:

"The new homes market was relatively stable in the third quarter as buyers delayed their move over the summer and housebuilders responded to economic conditions by continuing to incentivise sales. As buyer affordability improves, with increased levels of bank lending and a growing number of shared equity schemes coming on stream, a stock shortage threatens to become the biggest hurdle to home ownership. In some areas subdued levels of development could result in competition driving up prices for new homes. The National Planning Policy Framework (NPPF), currently being debated in parliament, has the power to reverse this trend but if it is finally enacted into law we are unlikely to see more new homes coming on to the market until at least 2013.”

 

Comments

comments