United Trust Bank has said that the differences between recent house price indices highlight the importance of developers paying attention to the particular market they are targeting.
This follows publication of the latest Halifax and Nationwide house price indices.
“Well what can we say? One index up the other down,” said Noel Meredith, head of development finance at United Trust Bank (UTB).
“It’s indicative of a low volume market where indices are highly sensitive to the actual locations and properties changing hands in any period. The different results reflect prices on different properties and highlight that this is a very differentiated market where values and direction of values is location dependent.
“Our own experience suggests that there is a dearth of new build property in many areas. Where appropriate supply is introduced into these areas and where there are buyers with access to mortgage funds, sales occur. But the prices have to be realistic. Whilst nationally prices are flat, London has been an engine of growth off-set by falls elsewhere.”
Meredith added: “Developers should pay attention to the market they are targeting. Are there buyers? Do they have access to mortgages? Can they afford deposits? Is the end product suitable? And will it be delivered to meet the exacting standards today’s buyers expect?”