The firm has estimated that the majority of new houses and apartments sold over the past twelve months have included some form of discount from developers that has been hidden in the 'bottom line' prices - ultimately distorting the 'true value'.
Firstrung believes that this skewing of the upfront price is hampering potential first-time buyers, and is subsequently calling for Land Registry to register only the net cost in its official figures.
Paul Holmes, Firstrung's operations director voiced concern over whether 'official' new homes data is actually shielding the true value of properties as it does not take account of these discounts.
"Given that SmartNewHomes.com suggests that the average price for a new property's is currently £259,995, if developers are 'padding' the bottom line price by up to 10 per cent then the true market price could be out by £26,000," he said.
"This is a huge amount which could leave a first-time buyer in considerable negative equity upon the completion of their purchase.
"We urge all first time buyers to insist that the developer provides two prices; a price with incentives and a price without."
Holmes also warned that market conditions will have made first-time buyers a larger target for developers looking to rid themselves of properties which may not be selling as quickly as hoped as buy-to-let investors take a step back from buying new properties to assess their options.
"Developers will now aggressively target FTBs with incentives as opposed to slashing prices. Unlike avaristic buy-to-let investors, the FTB will only make one choice, which could prove catastrophic if they are left holding 'fresh air' in terms of valuation."
