New and expensive homes doing quite well

Posh London flats
Flats like these ones in London are rocketing in value
“Strong demand from wealthy, cash rich buyers, both from the UK and overseas, as well as limited supply has supported this sector of the market" Nitesh Patel, Lloyds TSB
  • | by Kristian Dando

The average price of a new-build home has increased by 12% over the past five years to £233,822 - a whopping 9% higher than the UK average, according to a bit of analysis from mortgage provider Halifax.

The same research found that flats were the biggest sellers last year, accounting for over a third of properties sold. They were followed by terraced and detached properties, which made up for just under a quarter apiece.

The average national price rise for new homes may be skewed somewhat by the contrasting picture in London and areas in the north. New-build homes have risen in price by a colossal 57% in the capital over the past five years, while some locations in the north of England have seen new homes plummet in value by as much as 10%.

Meanwhile, sales of properties worth over £1m increased in 2012 and reached the highest level since the halcyon, pre-recession days of 2007, according to Lloyds TSB.

The total number of sales of properties which cost at least £1m in Great Britain rose by 2% from 7,270 in 2011 to 7,397 in 2012. London and the south east of England accounted for the vast majority of these high value sales.

Edinburgh and Cheshire East – where footballer’s paradise Alderly Edge is located -  recorded the highest number of million pound sales in 2012 outside southern England, with 50 and 32 £1m houses sold respectively.

Wales saw the biggest decline in £1m plus sales, with a drop of 71%.

Lloyds TSB housing economist Nitesh Patel said: “Strong demand from wealthy, cash rich buyers, both from the UK and overseas, as well as limited supply has supported this sector of the market. As a result, sales at the very top end of the market are much closer to their peak levels than the market as a whole."