The prices of new apartment properties are falling as consumers look for family homes, new figures show.

In June, the price of a new apartment fell by one per cent, while other property types experienced a price increase due to rising demand, according to the New Homes Index from SmartNewHomes.com.

While apartments make up 58 per cent of the new housing market, a figure which has risen by two per cent over the past year, the average price of a semi-detached property has risen by 8.5 per cent in the last year.

The figures reflect the fact that too many apartments and not enough houses are being built, at the expense of family homes, claims the company.

"The government's current planning policy is focussed on high density properties -ultimately forcing developers to build apartments, regardless of demand," said David Bexon, managing director of SmartNewHomes.com.

"The needs of the consumer must be addressed, and developers must be allowed to respond to market demand, which is crying out for three bed semis."

If you are thinking about buying a new property and will be applying for a mortgage, you will be credit checked. Order your credit report first and make sure it's up to date and accurate.




Next :  Boom for buy-to-let mortgages