6 Nov

New builds 'just as valuable' as older properties

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.

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