New build could see 10% rise in value

Barrats Development has reported a 4% increase in the average value of its new-build properties.

The country’s biggest housebuilder also estimates that new-builds could soar by 8% to 10% during the course of 2010.

David Bexon, managing director of SmartNewHomes.com, described the figures as "encouraging". He pointed out that the housebuilding industry has generally responded well to the challenging market conditions experienced in the UK over the last two years.

"However the strong performance of these companies is yet to be matched by decisive government action," he added. Bexon said that there are still a number of pressing issues that need to be dealt with, including the "troubled" mortgage finance market, "antiquated planning system" and "prohibitive regulations".

He claimed that these matters need urgent attention in order for a full recovery to be made in the housing sector.