New builds do not inherently lose value

New build properties are no more likely to lose value than other types of house.

The Home Builders Federation (HBF) says that new builds are capable of losing value but only if market conditions dictate it.

The comments follow recent reports of newly built homes in some parts of northern England losing much of their value in a matter of months.

HBF says that the drop in value is not down to the fact that these properties were new but instead reflects the market in these regions.

"It's really a question of what a local market situation for a particular type of product is, rather than something generic about new homes losing value," said John Slaughter from the organisation.

"If there is a problem with prices it would be a reflection of that market supply and demand situation for that particular type of accommodation in that particular market, rather than a more general issue about new homes losing their value – that's not the general position, they're not losing their value like that across the country," he added.

The government has announced that it intends to build three million new homes by 2020.

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