DESPITE reports of a slow down in the housing market, the new homes sector is still highly active in the South East.

We are continuing to see a high level of activity, with consumers attracted to the long-term benefits of a new home such as low maintenance and energy efficiency, together with good design features.

Sales are active from a cross section of purchasers throughout our residential development division which covers Kent, Surrey, Sussex and Berkshire.

Demand is still outstripping supply, particularly in popular commuter towns.

Balmoral House, a scheme of apartments in Tunbridge Wells, sold at a rapid rate and we have recently sold out at Weavers Place, a scheme in Tenterden which launched in the spring.

Although interest rate rises have had a short-term negative affect on rental yields, buy-to-let investors are still very active in the market, and with the introduction of a single capital gains tax of 18 per cent in April, 2008 as announced in the pre-Budget report, owners of buy-to-let properties and second homes could save thousands of pounds when they come to sell.

While there continues to be a supply shortage of new homes and a sustained demand, I believe it is unlikely that the market will significantly slow.

* Paul Hogarth is partner and head of new homes sales for Knight Frank in the South East. To contact his team call 01483 564 660.