Despite the current overall shortage of properties on the market, the price of new apartments fell in June, suggesting that builders are being wrongly forced to build too many apartments and not enough houses.
This fall reinforces concerns that during a time when the country is suffering from a lack of supply, too many apartments and high density properties are being developed, at the expense of family homes and the consumer.
Although all other property types in the mix experienced an increase in average price last month as demand rises, the average price of a new home was pulled down by 0.5 per cent, solely as a result of the fall in price of new apartments.
Apartments continue to dominate the new housing market, making up over 58 per cent of the housing mix, a figure that has risen by 2 per cent over the last year. However, while their prices look set to continue falling, the average price of a semi detached property has risen by 8.5 per cent over the last year, reinforcing consumer demand.
These findings support the recent campaign launched by SmartNewHomes.com calling for more suitable housing for the young family. The campaign is demanding that the government address the shortage of suitable family homes by readdressing its planning policy which dictates the construction of apartments.
David Bexon, managing director for SmartNewHomes.com, said: “Apartments have dominated the new housing mix in recent years but the demand for these types of properties is falling. Many buyers now are looking to purchase their first family home and an apartment is just not suitable.
“The government’s current planning policy is focussed on high density properties -ultimately forcing developers to build apartments, regardless of demand. The needs of the consumer must be addressed, and developers must be allowed to respond to market demand, which is crying out for three bed semis.”
