The price growth of new build properties almost halved in June and the number of transactions fell 8.9%, according to the latest data.
In the year to end June 2018 new build house prices rose on average by 5.2% across the UK which is down on last year’s figure of 11.0%, according to the LSL New Homes Index.
According to the data from the land registry, the average price of a new build property was £300,538, a 4.8% rise on March 2017.
Of the 85,493 sales the Land Registry received for registration in June 2018, 8,735 were newly built, an 8.9% fall on June 2017.
The LSL Land and New Homes ‘New Build Market Review 2006 Dec 2017’ has just been published and this looks at top level data for the new build market over the decade ending Dec 2017.
The report graphs the fall in sales volumes to the low point of the last decade, which was around 2009, and the subsequent rise in volumes over the years that followed. In line with some market predictions though the output now seems to be levelling off. Over the same period strong house price growth in London, combined with growing sales volumes has led to an even bigger recovery in the total sales value of the new build sector.
James Allen, head of alternative investments at Walker Crips, said, “Once again statistical data on the UK property market is providing conflicting signals.
“The last few years have seen a significant lack of liquidity in the prime UK property market with agents across the capital reporting longer transaction times and greater buyer bargaining strength. This weakness has spread to properties valued £1m-£2m as they face the dual impact of weaker house prices for higher value properties and the impact of higher stamp duty.
“For transaction numbers to have remained largely stable suggests that not only have sellers at the higher end of the market accepted downward pressure on pricing, but also that liquidity in the lower end of the market remains strong.
“When the UK House Price Index is released on 15 August, today’s data suggests we will see reasonable house price growth in less sought-after locations and the house price falls in high value areas should be more apparent.
“Perhaps this is the beginning of the end of the fragmentation of the UK residential property market that has been a signature of the last two years.”