3 Feb

Prices recovering well in new homes market

Prices recovering well in new homes market

The new homes market has recovered well over the past six months, new data has revealed.

According to the New Homes Index released by SmartNewHomes.com, the average price of a new home rose by 1.1 per cent in December last year, compared with the previous month.

This is the seventh consecutive month that properties in the sector have increased their value, which the company described as "a remarkable recovery" since its low point in May 2009.

David Bexon, managing director of SmartNewHomes.com, commented: "Many house builders are beginning to talk positively about growth in the first half of 2010, with plans to reopen mothballed sites and a renewed thirst for land acquisition."

He also noted that other factors, such as acquisitions of smaller home builders, rights issues and rising share prices, are contributing to a positive outlook for the sector for the year ahead.

In January, Mr Bexon pointed out that 2009 had been "a tale of two halves" in a blog post, where he predicted a modest recovery for house builders in 2010.ADNFCR-1222-ID-19595110-ADNFCR

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