Rise in Building Prices

Building Prices Rise

England has seen a rise in the new build house prices rose on average by 5.6% in June 2016. According to the latest LSL Land & New Homes Index, the rate has remained same as recorded in May 2016. But in June 2015, 1% down on the figure was released. While similar price rises were seen on a regional basis that was up by an average 3.9%, like before, it is Greater London, once again, that has seen the highest price growth at 8.2% down, though the figure last year was 11.6%. New Builds in Bicester has not seen much of a rise in prices, though.

Shaun Peart, the managing director of a company named LSL Land & New Homes said that with the continuous rise in the prices of new builds, there is a strong demand for new builds that can be seen and that in some regions prices have risen quite considerably across all property types. According to him, in the North West, which retains its position as one of the best performing northern regions, an average growth of 4% was recorded in June with detached properties in particular.

He also added that in contrast, though in the same northern region, it was the North East that actually saw a fall in the prices in June. This happened particularly in the case of the detached properties as well as flats which on average fell by 2.6%, which is lower than May 2016. Talking about the greatest movement in terms of price change, once again Greater London who retained the lead over other regions with an average increase of 8.7% in the price of flats followed by the prices of detached properties which rose by 6.6%. It has a massive difference compared to the prices of places like Wales which has seen a very slight difference.

The changing figures reflect with the rise in demand for properties, there has been a constant rise in the prices. But this by no means says that the construction of new homes has slowed down as demand for new homes to be built is still very high. Peart also added that with the appointment of Gavin Barwell, as housing minister, he will work hard to fulfill his commitment immediately building 1 million homes. This signals, nothing but that new homes are one of the hot topics on the political agenda in the current scenario in England. But, though a clear desire to build in England remains, the undeniable problem that seems to create a hindrance in planning is the unavailability of space now after Barwell’s comment about Green Belt land, and also how the process of planning can be improved. At the same time, it is good to hear that there has been a 4% increase in the number of planning permissions granted in the first three months of 2016 but, from the perspectives of companies and that of the developers, a stumbling block of local authorities being unable to process the permissions as quickly as required still remains. Whatever may be the case, the positive side of it says that that government is on the side of the builders and hence, along with providing new homes to people, this business is going to see a great profit in the near future.

So, if you are someone staying in the Northeastern region of England, New Builds in Bicester would be a great choice as the prices of houses in this area have not seen a very high rise as compared to the other regions.

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