Average new home prices fall 1.1 per cent

Posted: 17 Oct 2006 12:34:28 GMT

Average new home prices fell to £255,787 in September, down 1.1 per cent over the course of the month and 0.1 per cent over the last year

Average new home prices fell to £255,787 in September, down 1.1 per cent over the course of the month and 0.1 per cent over the last year.

The fall, which was unexpected after a boost to the market in August, is equivalent to £2,886 in cash terms, said SmartNewHomes.

Despite being a surprise, the slip is no cause for alarm and is less than historical trends for the season, the report added.

It was likely to be related to the quarter point added to the base rate of borrowing at the beginning of August.

Property prices have continued to rise across the wider market, indicating that buyers remain confident about future growth in the market.

Apartments were the only type of new property to continue to rise in value over the month but remain the most affordable class of property.

Larger three and four bedroom flats are particularly popular as young families priced out of detached and semi-detached homes begin looking for an alternative.

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