Drop in confidence for new homes

There has been a drop in new home asking prices caused by consumer confidence being battered by interest rate rises, according to one property expert.

Dave Bexon, the managing director of smartnewhomes.com, says that he is expecting a "small" three to four per cent rise in the price of new homes during 2007 because last month the price of new homes fell by 1.4 per cent.

He said: "We have had two, if not three, interest rate rises and general consumer confidence is probably slightly affected by that.

"I think we will probably see a stabilisation and a small rise in new home prices this year."

He explained that semi-detached properties and detached homes have seen an increase in price in the last month while the prices of apartments have fallen.

This is explained by the fact that the number of new detached and semi-detached homes being built has fallen over the last year whilst apartments and townhouses have increased their presence in the mix - up one per cent and three per cent respectively.


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