Lenders remain cautious about over exposure to the sector and many of the potential buyers who recognise the intrinsic ‘value-adds’ associated with new build are equally strident about not wanting any built in that nice field behind their house.

Pity the developers then, who have to balance supply with demand and negotiate interminable planning & council regulations in order to build a product that usually can only be sold if lenders can reach a level of comfort regarding any site.

Developers are essentially retailers and it is no surprise that they seek the highest possible price for their wares. In a normally functioning market, appropriate checks and balances are in place to ensure that hope value doesn’t accelerate away too far from actual – and this is a critical role of the independent valuer appointed by the lender in the mortgage application process. As such a healthy dialogue should exist between the industries – and for the most part does.

In my view, the good news is that the negative associations with new build are now largely echoes of the past, rather than real issues today. Our data tells us that in 2009, you were many times more likely to be repossessed living in a new-build property than a second hand one, a statistical but real oddity mainly reflecting the oversupply of buy to let flats built to respond to speculative demand. In 2011, homeowners were at least five times less likely to be repossessed in a house built in the last two years than prior to that date, suggesting that new projects generally represent more sustainable investments for applicants.

And there’s more good news. Developers often point out that buyers will pay a ‘New Build Premium’- not too dissimilar to when buying a new car, with a warranty and all mod cons. Our most recent data confirms this is a real effect, though not consistent across the UK. In Greater London, in sample months from 2011, the figure was between 8% – 16%.

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However, with the exception of within the M25, flats and terraced properties rarely seen to command any premium. On average, Scotland, Wales and the West Midlands only exhibited premiums in relation to detached property, but semis typically went for between 2 – 8% more than their local second-hand equivalents.

Richard Sexton is esurv’s director of business development