New build home prices 'rise faster'
New build house prices have risen at a faster rate over the last five years than property prices generally, a study has found.
However, there were sharp variations in the direction of new build house prices across the country. They have plummeted by 10% in the North over the five-year period to reach £157,190 on average.
New build prices have also dropped by 5% in Wales and in Yorkshire and the Humber between 2007 and 2012, to average £174,814 and £161,254 respectively. Meanwhile, the price of a new build home in London has soared by 29% over five years to reach £415,540 typically and the South East recorded the second biggest uplift, with a 17% increase taking average new build prices to £292,316.
Various initiatives have been launched by the Government to give people a helping hand to buy a new build property and boost the construction industry. These include the NewBuy scheme, which Halifax and other lenders have signed up to, which gives buyers who have a deposit as low as 5% a helping hand to buy a new-build home.
The Government also announced a new scheme called Help to Buy in its recent Budget, which has had the effect of extending an existing equity loan scheme to help people buy a new home with a low deposit.
Craig McKinlay, new mortgages director at Halifax, said: "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."
Flats were the most popular type of new build property sold last year, making up 37% of the market, followed by terraced homes accounting for 24% and detached properties at 23%, according to the Halifax research, which used Land Registry figures.
The Royal Institute of British Architects (Riba) has recently called for the Government to make sure that the next generation of new build homes have enough space and natural light.
The institute said previously that it has found evidence that dissatisfaction with homes was generally higher among people living in newer properties.