Mortgage Industry News

← Back

Mortgage holders see house prices fall

Date: Fri, 05 June 04 Analysis

The average price of a new home in the UK fell by 3.1 per cent last month to £261,645 according to new data released by the SmartNewHomes website.

The fall means that prices are now also 3.1 per cent lower than they were at this time last year - the first negative annual rate of change seen since the housing boom began.

This is the result of consistent interest rate rises and market speculation causing a more cautious attitude amongst homebuyers and leading to housebuilders adjusting their selling prices.

David Bexon, chief executive of SmartNewHomes, commented: "This latest report on new homes in the UK reflects what is being seen in the wider housing market.

"Prices could not be sustained at the exceptionally high levels we have seen over recent years and a price correction was needed.

"We are seeing fewer buyers around at the moment, but those looking to move are willing to pay more for a new home.

"They are finding that it is a buyers' market and that housebuilders are willing to offer them competitive deals. However increasing demand for homes will help to pull the market back up in 2005.

"When it becomes evident that the slowdown is only short-lived, buyers will return and prices will begin to rise again."

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.