As house builders reflect on highly positive results for 2015, with completions and revenue up against 2014 figures, many believe that the scene is set for a more positive outlook this year thanks, in part, to improved consumer confidence and the array of government initiatives that support home ownership.
Interestingly, however, while the results are good, the prices of new builds in some areas have seen a slight decrease as Shaun Peart, Managing Director for LSL Land & New Homes, comments:
“While average new build prices rose by nearly 6% in the year to the end of January 2016, this is slightly less than the 7%+ reported at the end of January 2015. The North East, in particular, has contributed to this slight decline with prices of new build flats now 8.3% less than they were a year ago. In addition areas within Scotland, Wales and Yorkshire and the Humber have also seen some reduction in prices.
Looking at Greater London, in the year to January 2015, new build growth stood at 15.5%, which was more than twice the rate of ,the then, second best performer, the South East at 7.2%. In the year to January 2016, however, things have changed quite markedly with Greater London showing a year on year growth rate of 7.9%, which is only marginally ahead of the South East (7.4%) and below the rate achieved by East Anglia (8.9%). House price growth in East Midlands has accelerated over the year and now stands at a healthy 6.3%....