People willing to pay more for homes
14 April 2004
The amount people are willing to pay for a home in the UK rose by two per cent last month, according to a property website.
SmartNewHomes.com found that the average price a homebuyer was willing to pay in March 2004 was £213,569. The company's index tracks the location and average prices homebuyers are willing to pay for new properties and showed that the UK housing market has now recovered from its winter seasonal dip, rising 7.6 per cent from the beginning of last year.
The website recorded price rises in all regions except Scotland and London. The sharpest increases were in Wales (13.8 per cent since March 2003) and the North (9.8 per cent since March 2003), while the North West, Yorkshire and Humberside also saw steep increases in the cost of new homes.
London demand prices were down 1.6 per cent last month, with the average demand price reaching £248,697, 12 per cent lower than a year ago, indicating that prices for new homes have peaked in the capital.
Meanwhile, the index showed that semi-detached properties saw the highest annual increase in demand price, up 14.5 per cent compared with an average rise of just four per cent. The number of buyers looking for detached houses also rose to its highest level for almost a year, suggesting that buyers are starting to abandon the apartments market.
SmartNewHomes.com's migration index showed that many Londoners are looking to move out of the capital. Other areas with 'negative' migration included the West Midlands and the South East, while the most popular region to move into was the South West, followed by Yorkshire and Humberside and Scotland.
David Bexon, Chief Executive, SmartNewHomes, commented: "The rises we have seen over the last month indicate that the market has fully recovered from its annual seasonal dip. The increasing demand for new homes, which we are seeing across the UK, is a possible reflection on lenders recently increasing their salary multiples whereas in London, buyers are showing resistance to the high price of new homes schemes throughout the capital."