The South East of England has registered the strongest price growth in new build houses in England, Wales and Scotland, according to new figures from SmartNewHomes.
The average price of a new home in July was £235,579, up 1.4 per cent since June and 3.8 per cent in the last three months.
Steven Lees, Director of SmartNewHomes, said: "Housebuilders have enjoyed an unseasonal strength in buyer demand at the start of the summer not seen for five years. Although supply is increasing, it still falls far short of demand and this is contributing to the rise in prices.
“The Government has recognised that the new homes market can play an important part in pulling the UK out of recession and has unveiled plans that include public funding for new development and relaxing social housing requirements to stimulate construction that should make a further contribution towards the three million new homes it wants built by 2020. However, mortgage availability remains the linchpin for the industry and will ultimately determine the role housebuilders can play."