As well as the Land Registry report for the last quarter of 2003 we have a house price report for January showing a continuing upward price trend.

SmartNewHomes.com has released its ‘new homes index’ which shows homebuyers are willing to pay an average of £210,808 for new homes – 6.2% more than this time last year.

According to the figures released demand prices across the country witnessed their normal January dip but are up 6.2% since the same time last year, indicating that the decreases are nothing more than a seasonal slowdown.

The index tracks the location and price homebuyers are willing to pay for new properties searched for on the company’s web site.

North-South divide

London and the South-East are the most expensive areas in the country, with homebuyers willing to pay in excess of £250,000, over 30% more than in Scotland and the North. Prices in East Anglia and the South-West continue to rise steadily, whilst the North and North-West saw the biggest annual increases of around 10%.

Rural retreat

Migration out of the more expensive regions continues, with London and South-East residents looking to move to the South-West, Scotland and Wales. The West Midlands also experienced negative migration with more people moving out of the region compared to its neighbour the East Midlands.

Detached houses command highest prices

The price homebuyers are willing to pay for a detached house is £270,526, a decrease of only 1.4% over the three months since October 2003, making them the most expensive properties. Other prices fell slightly, with semi-detached and townhouses the cheapest properties.

Almost half (43%) of new homebuyers were looking for apartments, making them the most popular property type.

David Bexon, Chief Executive, SmartNewHomes, commented: “We expect to see a slight seasonal reduction in demand price around January as the hangover from the Christmas period means people do not tend to move house immediately following the new year.”

“However the figures from this month’s survey show that the market is stronger than it was this time last year.”

“2004 looks set to bring continued increases in house prices.”