THE average anticipated selling price of new homes started during the second quarter of 2004, increased by eight per cent on the same period in 2003, according to the National House-Building Council (NHBC).

New homes in the UK will cost an average of £174,000 during the second quarter of 2004, an eight per cent increase on quarter two of 2003 (£161,000). Based on actual selling prices, the proportion of new homes priced at over £100,000 went up to 91 per cent, a significant increase on the same period in 2003 (84 per cent).

In the South East there was a nine per cent increase in the number of houses being started compared with the same period in 2003. This compares with the nationwide figures which show an increase of four per cent in the number of new houses being started.