New builds show recovering price growth

Penthouses recorded a 2.7 per cent price growth in September, compared to the UK’s overall 0.7 per cent growth, while the average new build price in October was £258, 760.

The rise in new house prices was deemed a sign of returning confidence to the new homes sector.

SmartNewHomes.com said top end buyers were not as alarmed by the current difficulties in the financial market and that the popularity of penthouses looked set to continue.

However, the year-on-year price change for penthouses was still down 7.4 per cent compared to the average 0.7 per cent new house price growth.

It added that the incentives offered by developers prior to year end had encouraged buyers to take advantage of deals, such as paid Stamp Duty or discounted prices.

Andy Frankish, managing director of Mortgage Talk, said: “The economic basis for the housing market is still relatively strong and there is still demand. The bottom end of the market is lacking confidence and they are influenced by the media, whereas people who have more experience are still prepared to invest. We need to keep inflation under control.”

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