The price of new flats has fallen by 10 per cent in a year, according to a survey that adds to fears of housebuilders flooding the market with overpriced apartments.

While the value of new detached and semi-detached homes leapt between March 2004 and March 2005 (17.8 per cent and 8.8 per cent respectively), prices of new flats fell by 9.8 per cent, according to the survey by SmartNewHomes.com.