New builds 'just as valuable' as older properties
Newly-built properties are just as valuable as older homes in a
property market where demand for housing is high and homes are in
short supply, industry figures have said.
Commenting on recent research suggesting that new-builds were
depreciating in value faster than more established properties, John
Slaughter of the Home Builders' Federation said that property
market forces determined price - not the type of property.
"If there is a problem with prices it would be a reflection of that
market supply and demand situation for that particular type of
accommodation in that particular market, rather than a more general
issue about new homes losing their value," he said, adding that
new-builds were not falling in price across the country.
Mr Slaughter admitted, however, that some areas may have been
oversupplied with a particular type of new-build property, causing
a drop in price.
A recent report by mortgage brokers John Charcol claims that plans
to build three million new homes by 2020 will not be enough to ease
the shortage of housing supply, suggesting that properties of all
types will continue to be in demand.