I'm not sure bout the rest of the country, but certainly round me houses seem to have gone as far down as they're going and on the up a bit.
Particularly with the government shared equity schemes available, developers are not as inclined to drop prices on new builds, as buyers can just purchase on a 75/25 deal.
Mate of mine has just bought one with his girlfriend, £180k for a 4 bed semi with garage, brand new 3 tier townhouse, really nice. Great for a first time buying couple, the shared equity means at 24 you've got a house you can plan a family in and not have the need to upgrade to anywhere bigger.
Personally though, I wouldn't go for it, I'd rather live within my means i.e. as higher mortgage as I can comfortably afford myself having put down a 10% mortgage - that way you get the best out of the equity you put in and all the profit of course is yours!
I'm just hoping rates are low next year, as my 5yr fixed rate runs out!