Despite current reports of a slowdown in the housing market, the new homes market is still very active in the south east, according to Knight Frank.

Paul Hogarth, partner and head of new homes sales and marketing for Knight Frank in the south east, said: “ Sales are active throughout our residential division which covers Kent, Surrey, Sussex and Berkshire. Demand is still outstripping supply, particularly in commuter towns.

“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, seeing bricks and mortar as a safe investment for long term capital gains, and with the introduction of a single capital gains tax of 18% 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. Whilst 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 down.”