Tuesday, July 11, 2006

New apartment prices fall

11 July 2006

"The average price of a new home in the UK in June was £258,581, down 0.5% compared to May. But the fall was caused by an increasing oversupply of new apartments, said SmartNewHomes.com in their new homes index for July. All other property types increased in value over the month.

Despite apartments being the only property type to fall in price this month their domination of the housing mix (58.6%) has meant just a 1% fall in price has had a negative effect on the overall average cost of a new home.

Over the last three months new properties have fallen by 2.3% and over the year to last June they fell by 1.1% the new homes website said."

Anyone who invested in apartments recently is now likely to be in a difficult position with a choice of selling at a loss or letting for a lower than anticipated rent.

Chris Bell

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