With the latest data available showing that new builds are selling for 29% more than existing homes on average, the market is clearly recovering well as we edge seemingly closer to a post Covid era. However, further research has identified certain areas of the new build market that are greatly exceeding that average. The UK new build market is emerging as a shining light in the wake of Covid-19 pandemic.
According to the latest figures released by Warwick Estates, the highest price premiums can be found in the Northeast at 53%, with Scotland and the East Midlands performing nearly as well at 44% and 40% respectively. At 3%, London has the lowest price premium compared to other areas of the UK – potentially due to the fact that properties in London are often at a premium price regardless.
The average premium skyrockets even further when the market is analysed from a local authority level. The average new build house price in Harlow is currently £565,501, which is a massive 106% increase on the average price seen in the existing housing market in the same area. Other areas have seen similar price premiums at a local authority level as the market has strengthened over the last few months. Locations like Gravesham and Preston also seeing a price premium of over 90% for new build properties.
Although the pandemic has caused massive levels of uncertainty within almost every market, the UK housing market and new build market have both boomed. COO of Warwick Estates, Emma Power, said “New build homes have continued to command a price premium in every region of Britain, and this is not only good news for those developers delivering them to market but also to new-build home buyers who continue to see their investment hold its value.”
Power also added that in the best performing areas, new build prices can be as much as double that of existing homes – proving that the new build industry is continuing to add significant value to the overall UK property market.
Given the various hurdles that those in the new build industry have faced over the last 18 months, the prospect of a strengthening market offers promise for the future. With the sector showing no signs of negative after-effects as a result of the pandemic and new build property prices continuing to rise, the future for the new build market looks bright.