The average house price of new build property in the UK has increased by 12 per cent over the past five years and now stands at £233,822. This is 9 per cent higher than the UK average house price for all age properties, according to the Halifax.

Nationally, there has been an increase of 40 per cent, from £166,473 over the past 10 years. Regionally, the biggest rise in the past ten years has been in Greater London where the average price for a new home has risen by 57 per cent to £415,540.

The north-south divide is as prevalent in the price of the new homes market as it is in the overall market. Over the past five years, more than half of UK regions saw the average price of new homes fall, with the north experiencing the greatest fall of 10 per cent to an average of £157,190.

Craig McKinlay, New Mortgages Director for Halifax said, “In a relatively flat housing market, the new homes market has changed enormously over 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 in the new build market.

“We continue to increase the number of builders we work with and it is a testament to our commitment to put the purchase of a new build home back within the grasp of both first time buyers and homemovers.”

Halifax is one of the biggest supporters of the New Buy Scheme. One year on since the launch of a range of mortgages to support the New Buy Scheme, and recently signed up its 64th house builder partner representing 90 individual builder brands.

To date, Halifax has helped approximately 1900 buyers’ purchase through NewBuy, representing 1 in 3 of all applications and completions on the scheme.

Many estate agents report that they do not have enough housing stock for sale, but developers nationwide say they are working hard to increase the supply of much needed new homes and some agents are doing very well from marketing new build properties – so maybe if you aren’t involved in new build, it’s a good time to have a look.

LONDON

New developments:
Neptune Group will submit revised plans within the next few weeks for a £165 million mixed use development near the Olympic Stadium in East London, after the initial application was criticised by planning body, the London Legacy Development Corporation. Neptune’s initial proposal for the Olympic legacy zone included 800 new homes, a primary school and 110,000 sq ft of commercial space as part of the regeneration of Fish Island close to the Olympic Park.

The Network Housing Group has officially launched Langhorne Place, a development of one and two bedroom apartments in Dollis Hill, north-west London. The scheme will feature 47 one and two bedroom apartments, with prices starting from £249,950. A further 43 one and two bedroom apartments, available through shared ownership, will also be launching soon.

London agents’ market views:

We are selling everything that’s sensibly priced. Frankly, it’s not surprising as new homes are as rare as hens’ teeth!” Trevor Abrahmsohn Glentree International

Trevor Abrahmsohn, MD, Glentree:
“We at Glentree New Homes have the most comprehensive selection of new homes north of Mayfair and whatever product is available, and sensibly priced, we appear to be selling.

“Frankly, it’s no surprise, since there are so few new homes being built in London today that they are as rare as hens’ teeth! There are all manner of initiatives being proposed by government to try to release the gridlock of the planning process by giving the power back to the applicant using permitted development rights as long as the neighbours are consulted. I’m not sure how this can be regulated in a conservation area but any hope is welcome.

“There are two formidable obstacles that government could overcome in a meaningful way. One is to drop VAT on refurbishment [in common with new build] and the other is to increase the amount of funding available to small and medium sized builders. These are being shunned by all the lending institutions and if they are offered loans they are so onerous, they have to be refused.”

The main trend is investment in new build,coming from Asia, the Middle East and Europe.” Mark Howell Aspire

Mark Howell, Director, Aspire, Battersea:
“The main and growing trend is the overseas investment in new build property, particularly from the South East Asia and the Middle East. As the sterling is weak and the UK housing market still seems to be on the up, our new build properties continue to be an attractive investment for foreign investors. Properties are normally purchased off plan, hold for three to five years and then sell once the value has hit a certain level. We are also witnessing money coming from Europe – such as Italy, France and Greece – where either an increased tax regime is being levied or the economy is unstable.

We have also seen a number of buyers coming forward who are from the UK – but own a property in the country – and require a London base for one or two days per week for business or recreational use. For these customers, a new build property makes an ideal investment as it is secure and low maintenance, essentially acting more like a hotel than a home.”

Cambridgeshire agent’s view

Guy Jenkinson, Head of New Homes, Bidwells:
“Q1 2013 has been our most bouyant quarter for new homes since 2007. Cambridge has seen sales rates doubled on many of our sites and that success is being consolidated with continued investor demand and the take up of the ‘Help to Buy Scheme’ that is already paying dividends in its first months of operation. Our new homes research in Q1 2013 shows increases across all property types with a belief that some of our premier sites may see price rises of up to five per cent over the year.

“Looking more forensically at the ‘Help To Buy Scheme’ the new homes market could well see an increase in its demographic base with all sectors of the market not only first time buyers but also second steppers and all age groups being invited to benefit from the 20 per cent equity loan being made available by the government on new homes up to £600,000, that frankly, must cover over 90 per cent of the market.”

Surrey, Berkshire and Hampshire agent’s view

Katie Hunter, Senior New Homes Manager at Waterfords:
“In our areas, the new homes sector has seen phenomenal success with steadily rising sales. Consequently, our New Homes department finished the financial year ahead of target.

Demand is coming from various buyers, many searching for the perfect lock up and go property, a benefit that many new homes offer. We have experienced an increase in downsizers purchasing new homes due to reduced maintenance, higher efficiency and lower running costs. For people heading towards retirement, they benefit from a brand new home and more economical living, but they can free up equity for a better lifestyle or to help their children. One of the many draws to this area is the great transport links to the city with the benefits of rural surroundings.

We are marketing a number of one off new homes as well as developments but also have launch dates scheduled for the coming months demonstrating that supply in many areas is, at present, keeping up with demand. However, for the industry to continue to prosper then there needs to be the required delivery of new homes each year.

We have also seen interest from international buyers, particularly at the top end of the market. The Asters in Sunningdale, has received huge interest since its launch from international buyers and we have just had three potential buyers fly in following feedback from their relocation agents.”

Gloucestershire

Homes by Skanska has gained planning for a 143 home project in Cheltenham. Trinity Place will include a mix of four bedroom townhouses, as well as a range of one, two and three bedroom apartments.

The property arm is being absorbed back into the main contracting business, Skanska UK, less than 18 months after its launch as a standalone operation.

Scotland

Regulations setting out a 20 per cent increase in planning application fees in Scotland have now come into force in Scotland (from 6 April 2013).

Scottish agent’s view:

Innes Smith from Springfield Properties in Scotland:
The availability of lower deposit mortgages is opening up the market to people who were previously locked out because they couldn’t afford the deposit, especially first time buyers. House buyers want individual homes; our sales have increased substantially since we introduced our unique approach to house building across our central Scotland sites.