Finance Correspondent Housebuilders expect the price of new homes to soar by 10% during the coming 12 months as confidence returns to the property
market, a survey showed today.
Seven out of 10 builders expect the cost of property to increase during the next year, according to property website SmartNewHomes.com. The group said builders' optimism followed steady increases in house prices
since the start of the year, and was also a direct result of increasing demand for new homes. But it added that most housebuilders thought affordability would be the most important issue facing the new homes industry in the near future.
David Bexon, managing director of SmartNewHomes.com, said: 'Recent reports indicate that the housing market is recovering, and we hope to see a year of steady and sustainable growth ahead. 'We are very aware that affordability is an important issue, in particular for first time buyers, and I would strongly agree that the Government's competition for a £60,000 house could steer developers in the right direction, offering a more affordable solution for some buyers. 'I would also advise buyers who may be struggling to afford a new property
to consider the other alternatives on offer.
One option is to consider shared equity, this is available from housing associations and some developers and helps buyers to take the first step onto the property ladder.