New build properties "over-valued"
Property professionals
19th February 2009
New build properties in the UK are "extremely over-valued", an industry insider has claimed.
Paul Holmes, chief executive of Firstrung, has claimed that first-time buyers should disregard such properties unless they can ensure they are paying a fair market price.
"I am yet to see any developer relating and adjusting their prices to market valuations," he commented, adding: "They're still still working on valuations based on 2007-08 prices, so they really must begin to adjust their prices accordingly."
The Halifax House Price Index for last month showed that the average price of a house in the UK stood at £163,966, a rise of 1.9 per cent on December 2008.
Meanwhile, the Council of Mortgage Lenders reported last month that gross mortgage lending reached an estimated £12.6 billion in December 2008 - down 47 per cent on the previous year.
Mortgage lending slumped to its lowest level since 2002.
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