Sales of contemporary homes fall in USA while UK builders stay strong

Sales of contemporary homes have fallen in America for the third month in a row, but developers of new homes in the UK are staying strong.

New home sales dropped 0.7 per cent in July, the latest figures from the Commerce Department show. This marks a five-month low in America, as foreclosures and used property crowd the housing market.

As a result, the number of modern property sales has dropped. They now account for less than 20 per cent of the market, despite helping the economy – according to the National Association of Home Builders, one new build home creates an average of three jobs and $90,000 in taxes.

But while the US market falls, the outlook for contemporary homes in the UK is continuing to improve, according to major builder Persimmon.

After reporting a 50 per cent increase in pre-tax profits over the first half of the year, the company announced plans to start working on 70 new developments across the country.

The average price for their new homes “fell by 3.7 per cent”, reports What House, but “the company claim that this is due to the types of development it is building, rather than a general slump”.

Other developers are also pushing forward with new projects. Barratt East Midlands has joined the government’s FirstBuy scheme, which allows purchases to get a new home with a four per cent deposit and a mortgage for just 76 per cent of the asking price.

Managing Director Mark Wright comments: “During the current climate first time buyers could be forgiven for thinking that home ownership is out of reach but with FirstBuy and our exclusive furniture package, buying your first home may be more affordable than you think.”

With 4,439 new homes sold during the first six months of 2011, Persimmon is confident that it is fighting back against current financial conditions. America, on the other hand, has a long way to go.