As the latest government figures put the average property in England and Wales at £294,329, one of the UK biggest New Build companies reports a rise in reservations.
The UK House Price Index showed an annual price rise of 9.8% in December last year (the latest figures). In England the average property is valued at £315,119. In Wales it is £222,402. In London, the figure sits at £543,099.
At the same time the one-time big online estate agency success story Purple Bricks is itself up for sale.
The biggest annual price rise is in the East Midlands, at 12. 3%. Next highest is the North West with 12.2%. Yorkshire & the Humber is third highest with an increase of 11.8%. The smallest increase was in London at just 6.7%. Both the South West and the East of England were at the bottom of the region table with increases of just 8.9% and 9.9% respectively.
In terms of property type, semi-detached homes increased the most in value over the year, with a jump of 11.5%. Next was detached homes, jumping by 10.7%. Terraced homes were up by 10%, with the lowest annual increase for flats at 7.8 per cent.
The average price of a New Build home in England increased by just over 21% between October 2021 and 2022. That was 9% more than an existing resold property.
Barratt sees jump in New Build sales
Earlier this month UK Housebuilder Barratt optimistically announced an increase in New Build reservations. But they remained cautious for the rest of the year, they revealed, preferring to wait until the spring before making any predictions. If it remained similar to January though, it would result in up to 17,000 New Home completions this year.
The recent rise they put down to more competitive mortgage rates, a lower Bank of England base rate than expected and the news that energy costs are expected to reduce as time goes on.
The construction company reported half-year revenue of £2.8bn from June to December this year. That compared to £2.2bn for the same six-month period last year.
‘Disrupter’ Purple Bricks up for sale
Meanwhile it was once a roaring success story, but now online estate agents Purple Bricks is seeking a buyer of it is own. The company is expected to have made a loss of up to £20m last year following restructuring in it is lettings side and a failed international expansion into Canada, the US and Australia. The difficulties were exacerbated by entrepreneur and chief executive Michael Bruce leaving last year.
No buyer has yet been found for the chain and so far, no-one has come forward to publicly express interest. The company’s shares were once worth £5, but at the moment are sitting at less than 10p.
Investor Lecram Holdings, currently owns 5% of the group. Executives there are said to be pushing for new management at the top of the ailing online sales and lettings agency. More than one quarter – 26% – of the group is owned by Axel Springer.
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