Cost of new homes driven by demand
THE average price of a new home in July was £235,579. This is up 1.4 per cent since June and 3.8 per cent in the last three months.
Steven Lees, director of SmartNewHomes, says: “Housebuilders have enjoyed an unseasonal strength in buyer demand at the start of the summer, something not seen for five years. Although supply is increasing, it still falls far short of demand and this is contributing to the rise in prices.”
The Government has unveiled plans to stimulate further new development, including public funding to kick start projects and relaxing requirements for developers to provide social housing. Its target is three million new homes by 2020.