The index tracks the location and price homebuyers are willing to pay for properties searched for on www.smartnewhomes.com. December’s figures show that buyers were willing to pay an average of £224,554 for a property, up 1.3% on November and an 8.5% increase compared to the previous year.
London peaks
The price homebuyers are willing to pay for a property in London reached £300,423 – its highest point to date. However the month-on-month increases in the capital and the south were the slowest in the country, indicating that the widely-predicted southern slowdown has begun.
Both Wales and the North West demonstrated further strong increases, promoting their potential as the new property hotspots, while homebuyers in East Anglia expect to pay 3.8% more for new homes than last month and 9.9% more than three months ago.
Apartments back on top
Apartments proved the most popular property type with 46% of searches compared to 39% for detached houses, a reversal of the figures from last year when houses were a more popular choice. Other property types remained steady although the price of penthouses rocketed further, up 4.5% since November to £329,863.
Rural Renaissance
Homebuyers continue to avoid the high prices and fast living in London and the south east, with the East and West Midlands also experiencing a dip in popularity. Homebuyers moving out of these regions are searching for new homes in rural areas such as the south west, Wales and Yorkshire.
David Bexon, Chief Executive, Smart New Homes, commented: “The findings of this month’s index look likely to set the pace for the property market in 2004.
“The probable hotspots in the south west Wales and the north west are already showing strong growth and the figures illustrate that central London prices are starting to come under pressure.
“We believe that overall, house prices will continue to climb at a steadier rate than we have seen in previous years and there will continue to be a strong demand for new homes.”
For further information on SmartNewHomes visit www.smartnewhomes.com or email: [email protected]
