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The average price of a new home fell for a third consecutive month in August 2008, taking new home prices to just over £243,000

However, while most of the UK’s leading house prices continue to report sharp annual price falls across the UK market as a whole, the annual rate of house price growth in the new home market is beginning to show signs of levelling off.

Our Spokesperson said: While new homes prices are expected to continue to fall for the rest of this year, the rate at which they are falling has already started to level off.

With the number of new homes coming onto the market nearly halving in the last eight months (down nearly 3,500 new homes in March 2008 to just over 1,660 in August 2008), customer demand will definately fuel a return to house price growth over the longer term.

Just last month August, the demand price rose above stock price for the first time, as developers and builders adjust their prices to meet buyer expectations and affordability.

The new homes market first began to feel the squeeze of the credit crunch, well before the slowdown was officially picked up by the re-sale market, but with restricted lending, new homes are now providing one of the only ways for first time buyers to get onto the property ladder, as developers offer genuine savings and incentives.