Author Topic: House prices are falling – except for subsidised new homes  (Read 2324 times)

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Philofacts

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House prices are falling – except for subsidised new homes
« on: August 08, 2012, 10:33:47 am »
The Nationwide reports that house prices are falling at their fastest annual rate in three years.
The Nationwide report indicates house prices had a monthly fall of 0.7% in July and fell by 2.7% over the last 12 months - 13% below their peak in 2007.
Rightmove's asking price index suggests that even in London, asking prices have fallen 3,7% in the last month.

Conversely, house builder's reports for the year-end 30 June 2012 state a rise in their average selling prices:
Barratt state that the average selling price increased from £198,900 to £202,000. A 12-month rise of 1.6%.
Linden  £250,000 to £227,000  - a rise of 10%.
Bellway  £187,000 up from £175,613 - a rise of 6.4%
Cala Homes £339,000 up from £328,000  - a rise of 3.3%
Berkeley  £280,000 up from £271,000  - a rise of 3.3%   (to year end 30 April 2012)

This could be explained by house builders saying that they are building fewer of the smaller lower value new homes and more of the larger detached houses.
However, given that the total number of new homes they have built over the last 12 months has also increased this would appear unlikely to be true.

It is re assuring to know that all those government incentives (aka house building industry subsidies) are finding their way to first-time buyers rather than the house builder's balance sheets!
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