© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Despite apartments still dominating new builds, semi-detached properties are increasing in popularity, according to the Smart New Homes Index. Semi detached properties saw the biggest price rise over the year. However, apartments still dominate the new-build property type mix at 56%. According to ARLA’s quarterly survey, the capital values of apartments in the rented sector rose by 2.7% over the last three months, compared with houses which rose by 0.3%. There was a slight monthly decline of new detached properties coming onto the market.
Property market surveys show that the proximity of the Easter and May bank holidays took their toll on monthly house prices. However, prices continued to rise rapidly in May, increasing by 0.6% according to the latest survey form Hometrack, the housing information business. London remains the engine for growth, with values in the capital moving 1.2% higher in May. However, outside London house prices remained static across two thirds of all postcode areas. In the months ahead the prospects are not so good with buyer confidence likely to be hit by problems in the financial markets and potential interest rate rises. Hometrack expects average house prices to rise by just 3% over 2006.
Confidence remains strong among residential property investors: landlords have seen an increase in tenant demand and rising achievable rents over the past six months, according to research from Paragon Mortgages. A quarter of landlords reported that tenant demand for property is currently increasing. 38.5% of landlords reported that rents have increased over that last six months with buoyant tenant demand. The current average portfolio size of landlords surveyed is £1.31 million.
Things are not so rosy for those looking for affordable housing and first time buyers. Although the number of homes being built is increasing, with a 17% annual rise in new homes completions in the first quarter of this year, 70% of all homes built are priced at more than £150,000, according to home warranty provider, Premier Guarantee. The reduction of the building of affordable homes is at odds with Government’s efforts to improve the supply of low cost homes for first time buyers and those priced out of the housing market.
“The prospects for the second half of the year are not so good. The extent of house price growth across the capital is starting to turn down. Turmoil in the equity markets and talk of possible interest rate rises are likely to impact on buyer confidence, whilst the World Cup will affect activity levels.”
“Landlords are experiencing strong tenant demand as reliance on rented accommodation continues to grow. There is an increasing number of students and immigrants who tend to opt for rented homes.”
“The Government must do more to assist first time buyers with the expansion of the shared equity scheme along with the release of government-owned land for the creation of more low-cost homes which are truly affordable.”
Robin Plaster, Sales & Marketing Director, Premier Guarantee