Homebuilders expect to see over a 10% increase in the price of a new home over the next twelve months, according to a recent poll carried out by , suggesting a renewed confidence in the housing market.

The poll, carried out by SmartNewHomes.com, polled homebuilders' opinions on the key issues impacting on the current housing market. Some 70% of respondents predict an increase in prices over the next year. This optimistic forecast follows the steady increase in house prices since the start of 2006, and is a direct result of the increasing demand for new properties.

However, the findings also cite that homebuilders view affordability as the most important issue facing the new homes industry over the next year.  As a result, the majority view the Government's competition for a £60k house as an excellent initiative for those who are struggling to get onto the property ladder.

David Bexon, Managing Director of SmartNewHomes.com, comments: "We are very aware that affordability is an important issue, in particular for first time buyers, and I would strongly agree that the Government's competition for a £60k house could steer developers in the right direction, offering a more affordable solution for some buyers."

"I would also advise buyers who may be struggling to afford a new property to consider the other alternatives on offer. One option is to consider shared equity; this is available from Housing Associations and some developers and helps buyers to take the first step onto the property ladder."