Its new build price index revealed new build properties rose to almost £200,000 per unit, with a further rise of 8 per cent in reservation levels, from January 2005’s findings.
A rise in apartment-style properties being built was a further catalyst for the growth of the sector, increasing to 61 per cent, matching the government’s plans to increase the density of new build developments.
As a result of the growth in the building of apartments, detached houses reported a drop, accounting for 16 per cent of overall new-build property developments, down from the January 2005 figure of 22 per cent.
Commenting on the findings, Mike Ratcliffe, chief executive of Wolsey Securities, said: “We are seeing that the testing market conditions of 2005 are settling into a period of stability with signs of positive market activity as evidenced in positive reservation levels, which will ripple across the country from the trend being set in the South.”
However, Harry Katz, principle at Norwest Consultants, said borrowers needed to be wary of new build properties and urged them to look for alternatives. He said: “I don’t believe buying a new build property in the South East is a good idea under any circumstance. It is not just a matter of the mortgage element – actual quality of life is also important. There is not enough room or water in the area. Those without adequate or affordable housing options should be encouraged to look at other areas of the country, such as the North West, North East or even Scotland.”
Katz added: “The value of many new build properties could be distorted by fittings, fixtures and gizmos and tend to be small, claustrophobic and not built to the highest order. People would do well to avoid such apartments and seek better value.”
