The average price for a newly built home fell by 1.4% to £256,602 in February, while the fall for the last three months was 1.6%.

And the average price of a new build home has also taken a fall over the last year, down 1.3%, said SmartNewHomes.com reflecting the increasing volume of more affordable new homes in the north of the UK.

The semi detached property is one of only two property types to experience an increase in price over the last month, while apartments have experienced the biggest fall – further evidence that traditional family homes are in more in demand.

SmartNewHomes.com also records how much homebuyers indicate they are willing to pay for a new home.

Stock vs demand prices

While the average price of a new home (stock) has continued to fall, the price buyers are willing to pay for a home (demand) rose in February, recovering from a sharp fall experienced at the start of the year – an indication that prices may be about to begin rising again.

The new homes market has started slowly for 2007, with prices down month on month since the start of the year as buyers remain cautious, in the face of rising costs. However, this negative trend looks set to change with the price buyers are wiling to pay for a new home taking an upturn in February, indicating positive price growth across the market may be to follow.

SmartNewHomes.com records the type and price of properties currently available on the website, reflecting availability and patterns of building within the industry.

As a result of their presence in the new homes mix diminishing, the average price for both a new detached and semi detached homes have increased over the last year, up 1.4% and 7.4% as high demand for these property types continues.

While townhouses have experienced a fall in price over the last year, this is not a poor reflection of their popularity but instead, can in part be explained by the increasing numbers now being built outside of London and the south east, predominately in the north and the north west of the UK, where prices tend to be more affordable.