THE new homes market is going from strength to strength, according to figures released by SmartNewHomes.com, the UK’s online new homes specialist.

The average price homebuyers were willing to pay for a new property rose 1.3 per cent to £216,115 last month, indicating that buyers are able to fund more expensive homes.

Last year, London, the North and West Midlands were the only regions to see new home prices fall in the last 12 months, dipping an average of three per cent from the high prices these regions commanded last summer.

The number of homebuyers searching for a new property in rural areas increased last month, as Londoners and those in the South East looked for homes away from the capital, heading to the quieter and cheaper regions such as the South West and Yorkshire.

The shift towards more rural living away from the more central and built up areas of London and the South East is reflected by the types of houses people are looking for. Detached and semi-detached homes regained the ground they lost to the recent trend for apartment living, accounting for more than half of new home searches compared to 40 per cent for apartments and penthouses.

Towards the end of last year 47 per cent of homebuyers were specifically searching for apartments, but their popularity has decreased as the number of buyers searching for a city dwelling declines.

David Bexon, chief executive of SmartNewHomes, said: “This month’s Demand Index once again demonstrates the strength of the UK housing market into 2004. We are seeing no sign of a decline or reluctance to move, in spite of negative reports or interest rate increases, and more people are finding the resources to buy new homes.”