Average price of a new home hits 31-month high

The average price of a new home rose by 3.8% in May to £228,041, the highest level since October 2008. Strong positive growth was also recorded on a three month and annual basis, up 4% and 3.4% respectively.

Commenting on the data, Steve Lees, Director of SmartNewHomes said: “The significant rise in the average price of a new home is indicative of growing consumer demand during the peak buying season. There are significant numbers of potential buyers who are looking for new homes and who are keen to buy while they can still find excellent value for money.

“The affordability of homes for first-time buyers remains a problem, though the industry is hopeful that the new ‘FirstBuy’ scheme will boost the new homes market when funding starts to be released this Summer.”