The second quarter of 2007 has shown continued strong growth, fuelled by a buoyant demand for new homes across the UK. The average price of a new home now stands at £260,832 exceeding all previous records.
David Bexon, managing director of SmartNewHomes.com, said: May proved to be a record month for new homes and while I would expect the impact of Mays interest rate rise to filter through into Junes new home prices, the market has shown a clear indication that the slow start to the year is now behind us.
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The South West and East Anglia have proved new homes hotspots, with average prices up 12.2 per cent and 12.0 per cent respectively over the last year, as buyers increasingly look for a location where they can get more property for their money, and in many cases, a better quality of life.
The popularity of detached and semi detached new homes is evident in their strong price growth over the last year, while apartments, particularly in London have fallen in price reinforcing calls for more affordable family homes among the new homes mix.
Families with young children, those looking to start a family and even those just looking to upgrade are increasingly unable to afford to step up the ladder in London and as a result they are looking to move further and further away from the city.
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When comparing existing prices on our site, those looking to swap a two bedroom apartment in London for a four bedroom, detached home somewhere such as Suffolk in East Anglia could sell their London flat, purchase their new, detached home and still have money left over.
For those with growing households, this opportunity is just too good to ignore and as a result, I would expect to witness continued outward migration and a slowing of price growth in London as buyers shun the capital for commutable, yet more affordable properties in the Home Counties and further a field.
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