Apartments getting cheaper

Posted: 11 Jul 2006 10:09:08 GMT

            Property News - Apartments getting cheaper

The average price for a new apartment in the UK fell by one per cent in June in spite of an overall shortage of properties on the market.

According to a report by SmartNewHomes, this provides further evidence that builders are being forced to construct the wrong property types, with too many apartments springing up in recent years.

Demand for housing in the UK remains exceptionally high and the average price for other property types actually increased last month.

But because apartments account for 58 per cent of the housing mix, the overall average price of a new home in the UK fell in June, prompting SmartNewHomes managing director David Bexon to call for a change of policy.

"Apartments have dominated the new housing mix in recent years but the demand for these types of properties is falling. Many buyers now are looking to purchase their first family home and an apartment is just not suitable," he said.

"The government's current planning policy is focussed on high density properties - ultimately forcing developers to build apartments, regardless of demand. The needs of the consumer must be addressed and developers must be allowed to respond to market demand, which is crying out for three-bed semis."

The average price of a semi-detached property in the UK has risen by around 8.5 per cent in the last year.

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