New home prices down but deals set to encourage buyers

The average price of a new home has fallen for the third month in a row, SmartNewHomes.com has revealed, but a range of developer offers could now attract more first-time buyers to the market.

The website has reported that prices are down 0.9 per cent on the month and 1.2 per cent over the last quarter, but added that forthcoming end-of-year financial results for developers could play into buyers' hands.

Many developers are looking for ways to offload stock more quickly, and hence at still-lower prices, in order to boost their financial performance for 2007, SmartNewHomes.com has suggested.

"With many financial year-ends for housebuilders taking place just before Christmas, the majority of developers will be acting quickly to sell units," outlined David Bexon, managing director of the website.

"The current surge in developer incentives could play a vital role in encouraging first-time buyers back into the market, easing their initial costs and making home ownership a reality for those struggling to afford the cost of buying their first home," Mr Bexon added.

The website added that the average price of a new-build property is now £257,036, compared with a wider market average of around £200,000.

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