New build price premiums hit 106% in parts of Britain

Emma Johnson
Authored by Emma Johnson
Posted: Tuesday, June 29, 2021 - 12:12

The latest research from Warwick Estates has revealed which pockets of the new build market are currently achieving the largest house price premiums when compared to the existing market.

Warwick analysed the latest new build property prices and how they compare to the existing market across each area of Britain, with the research showing that nationally, new builds are selling for 29% more than existing homes.

The North East is home to the greatest new build price premium at 53%, with Scotland (44%) and the East Midlands (40%) also performing well.

At just 3%, London is home to the lowest new build price premium when compared to the wider market.

However, this premium can climb far higher when analysing the market at local authority level. In Harlow, the average new build house price is currently £565,501, a huge 106% more than the average of £275,077 seen across the existing market.

Blaenau Gwent is also home to an impressive new build price premium, coming in 99% higher than the wider market, with Gravesham (93%) and Preston (90%) also home to a 90%+ price premium.

Torfaen (89%). West Dunbartonshire (87%), Rochford (87%), Middlesbrough (83%), Merthyr Tydfil (80%) and Nuneaton and Bedworth (80%) also rank within the top 10 highest new build house price premiums.

COO of Warwick Estates, Emma Power, commented:

“Despite the uncertainty posed by the pandemic the UK housing market has boomed and this is no different where the new build market is concerned.

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 homebuyers who continue to see their investment hold its value.

In the best performing areas, new build property prices are as much as double that of the existing market which is proof of the value being added by the sector to the wider DNA of the national property market.”

Data sourced from the Gov.uk UK House Price Index - New Build vs Existing (February 2021 - latest available data)

Table shows the new build and existing average house price across each nation/region of Britain and the difference

Location

Average New Build House Price

Average Existing House Price

New Build Premium (£)

New Build Premium (%)

North East

£206,963

£135,584

£71,379

53%

Scotland

£229,159

£158,862

£70,297

44%

East Midlands

£292,664

£209,770

£82,895

40%

West Midlands Region

£294,479

£213,450

£81,029

38%

North West

£250,579

£182,270

£68,309

37%

Wales

£239,299

£176,594

£62,705

36%

Yorkshire and The Humber

£232,671

£179,642

£53,028

30%

East of England

£389,416

£306,335

£83,081

27%

South West

£331,819

£276,985

£54,834

20%

South East

£401,362

£340,295

£61,067

18%

London

£508,782

£493,617

£15,165

3%

England

£333,823

£265,592

£68,232

26%

Great Britain

£323,667

£250,271

£73,397

29%

Data sourced from the Gov.uk UK House Price Index - New Build vs Existing (February 2021 - latest available data)

 

 

 

 

 

Table shows the top 10 areas with the highest new build price premium (%) when compared to the existing market

Location

Average New Build House Price

Average Existing House Price

New Build Premium (£)

New Build Premium (%)

Harlow

£565,501

£275,077

£290,424

106%

Blaenau Gwent

£201,289

£101,201

£100,088

99%

Gravesham

£559,089

£289,889

£269,200

93%

Preston

£263,481

£138,488

£124,993

90%

Torfaen

£306,459

£162,455

£144,004

89%

West Dunbartonshire

£216,075

£115,735

£100,340

87%

Rochford

£653,529

£350,215

£303,314

87%

Middlesbrough

£213,206

£116,361

£96,845

83%

Merthyr Tydfil

£210,193

£116,704

£93,489

80%

Nuneaton and Bedworth

£334,539

£186,272

£148,268

80%

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