The monthly drop resulted in the largest year-on-year decline so far recorded in the new homes market, taking annual growth below -15%. However, the price of detached homes increased for the third month running, indicating a growing lack of supply and continued demand for this property type.
Commenting on the data, David Bexon, managing director, said: “While many of the UK house price indices are now starting to show monthly rises, it is likely to be a little while before we return to sustained price growth across the board. I do believe that the bottom is now being reached in the new homes market, and that the monthly volatility in average prices we are now witnessing is indicative of this correction.
“Developers are under pressure to secure sales, so asking prices for newbuild homes are unlikely to head upwards as rapidly as they have done with re-sale properties, as buyers return to the market. Instead, new home prices are expected to remain at a modest level that will realistically achieve a sale.”
