The move comes as developers continue to reduce prices to meet buyer expectations in a bid to entice further activity in the market.
Across the UK, the average price of a new home was £248,755 in July, down 1.3% on figures for June and down 5.1% since July 2007, when new home prices reached their highest level ever recorded.
However, figures show that the overall rate of decline in new home prices reduced from the previous month and that confidence in the London new homes market improved significantly in July, reflected by a 3.4% monthly price increase. London’s performance marks a reversal in fortunes on the previous month, when prices showed a decline of 3.3%. The SmartNewHomes.com Index indicates that a rebalance of stock, combined with the sharp price drop in June has renewed homebuyer interest in the Capital.
David Bexon, managing director of SmartNewHomes.com, said: “House price growth was not sustainable at the levels recorded this time last year and the 5% annual decrease in new home prices last month shows that the market has undergone a necessary period of correction.
“During the peak in new home prices last July, the gap between stock and demand prices was the biggest ever recorded, suggesting that strong, continued price growth was not sustainable. However, the gap between these two measures has been closed this July, providing an encouraging sign that new home prices are approaching a level where more people are willing and will be able to enter the market.”
