The average price of new homes has had a slow start to the new year, according to figures from SmartNewHomes.com.

According to the website's New Homes Index & Migration Monitor, the average UK property came with a price tag of £258,712 last month.

January prices of new homes were down 0.5 per cent on December figures, with SmartNewHomes.com recommending that homebuyers started 2008 out tentatively.

It claimed buyers "remain cautious about overstretching themselves in the current climate".

However, the website suggested the present conditions mean property buyers could secure a bargain ahead of the expected spring boom thanks to lower prices and "developer incentives".

Detached homes bucked the trend of falling house prices, the portal suggested, with prices for such properties rising.

SmartNewHomes.com suggested this could indicate an ongoing demand for family homes.

Last week, the Council of Mortgage lenders noted an increase of 11 per cent in gross mortgage lending for January.

Director general Michael Coogan predicted that lending volumes are expected to be "considerably lower" in the coming months as a result of market uncertainty.


Mr Rubinsohn said: "It does however throw into sharp relief the claim that a weaker housing market will necessarily be good news for first-time buyers."