New home prices hold firm in 2010, falling just 0.2%

Steve Lees, Director of SmartNewHomes, said:

“There is no doubt that 2010 has been a turbulent year for the new homes market, which is so closely linked to the mortgage markets and general economic prosperity. The industry is far leaner and producing far fewer homes than are needed, but this shortage of supply has supported prices over the year, which have remained stable.

"The second reading of the Government’s much-hyped Localism Bill is due on Monday 17th January, when the Bill will be debated for the first time. The industry continues to operate at about half capacity and there is little hope of this changing while planning law remains in upheaval. Once the Localism Bill becomes law, we remain sceptical about its effectiveness to drive through development locally, especially in more rural areas, once communities are given the power to prevent it."

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