New build home values are continuing to rise substantially faster than previously-owned property, according to official ONS figures, which show house prices overall rising 1.1 per cent in April.
The monthly ONS house price report for April showed prices rising 1.4 per cent annually.
It reported that new build homes rose 5.1 per cent over that period while the price of pre-owned homes was up 1.1 per cent - but while a substantial gap remains between the two, it is narrowing fast.
Last autumn the price of new build property was rising at more than ten per cent annually, while pre-owned homes were falling between one and three per cent.
The outperformance of new build homes sates back to late 2010 and arrived thanks to house builders creating schemes to help buyers move while mortgage finance remains tight and as cash-strapped developers finally stopped selling off properties cheaply.
However, the bounce back appears to be running out of steam. The annual rate of house price inflation for pre-owned homes shifted up from 0.9 per cent to 1.1 per cent between March and April, while it shifted down from 6.9 per cent to 5.1 per cent for new builds.
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