David Bexon, managing director of SmartNewHomes.com, commented: “We have seen positive price growth in new homes over the last year, with the average price of a new home up 0.7% compared to the same time last year. After a summer slow down new home buyers have returned to the market with renewed vigor with October proving a record month for online searching.
“I believe 2007 will be a good year for the new homes market and I would predict an average price increase of between 2.5% and 4% for new homes over the next year as demand continues to outstrip supply.
“I would anticipate that interest rates will stabilise following a further rise in the spring, dropping back by 0.25% in 2008 and I would urge the Bank of England to think carefully about the impact of future rises on the more vulnerable groups at the lower end of the market.
“The Government’s focus on the building of more family homes will be welcomed by developers and home buyers alike and I am confident that this revision in planning policy will allow house builders to better meet the needs of the UK’s changing demographics.
“I expect to see a continued increase in the supply of affordable homes, with housing associations becoming more widely used, offering more new homes and gaining a higher online profile. I would also expect to see an increase in starter homes available to enable first-time buyers to step on the housing ladder.
“Transport links will be hugely influential in defining the hotspots of 2007 and growing towns and cities situated close to established commercial centres will see areas such as Huddersfield and Swansea thrive, along with East London as a result of the 2012 Olympics. Gardens, off road parking and breakfast rooms will be the must have features for new home buyers in 2007.
“Undoubtedly space will be at a premium and we are likely to see a return to grand terraces and shared services. With record city bonuses anticipated and an increasingly cash rich, time poor population I expect to see the use of property portals to grow sharply over the next year, as more consumers rely on online searches.”
