The new homes market is set for a positive end to 2006 with the average price of a new home up 1.4% on the previous month. Despite a dip in prices over the summer months the average price of a newly built home is expected to finish above that recorded at the same time last year.

The average price for a new home in the UK in November was £260,675, up 1.9% in compared with the same month last year, said SmartNewHomes.com

While November proved a strong month for most property types, it was semi-detached homes and townhouses that experienced the biggest price growth of 4.3% and 2.4% respectively - reinforcing the continued demand for family homes across the UK.

The price buyers are willing to pay for a new home (demand) has continued to rise steadily since the early months of 2006, unlike the average price of a new home (stock) which has fluctuated over recent months, indicating that buyers have remained confident in the new homes market, despite the summer slow down and the interest rate rises announced earlier in the year.

November has seen the biggest annual price growth in new homes since April, with the average price of a new home up 1.9% on the price recorded at the same time last year. This year’s annual price increase has bucked the trend experienced over the last two years, which has seen the average price of a new home fall towards the end of the year, an indication that the new homes market is set for a positive start to 2007.

The new homes market got off to a slow start in 2006, with January’s prices down on the previous year. However, the end of quarter one saw prices rise drastically and while the new homes market experienced a considerable slow down during the summer months the positive price growth experienced over the last two months suggests a strong start to 2007.

	Price £	Monthly % change	% of houses for sale
Detached	322,066	+1.0	23.6
Semi-detached	241,081	+4.3	7.6
Town houses	246,474	+2.4	10.3
Apartments	232,955	+1.5	57.8
Penthouses	468,907	-1.0	0.7
All	260,675	+1.4	100