The property value premium paid by new-build homebuyers has elevated by 10.8% within the final 12 months, with new properties now commanding 40.2% greater than current properties throughout the British property market.
That’s in response to an evaluation of new-build home costs by new-build gross sales optimisation platform, Unlatch, who analysed the present value premiums discovered throughout the new-build market and the way they’ve modified in comparison with the identical interval in 2020.
The analysis reveals that at a mean value of £351,002, new-builds in Nice Britain are 40.2% (£100,591) greater than the common value of an current property (£250,411). Only a 12 months in the past, the common new-build value premium sat at 29.3%, which means that the value hole between new properties and the prevailing market has grown by a good 10.8% within the final 12 months alone.
Largest new-build value premiums
When it comes to the outright value premium commanded throughout the new-build market, the North East ranks prime the place new properties price 65.4% extra on common in comparison with the broader market.
Scotland can also be dwelling to some of the strong new-build markets the place property values are involved, with a present premium of 57%, whereas new-build premiums within the East Midlands additionally sits above 50% (52.5%).
At a neighborhood stage, Harlow (114.9%), Blaenau Gwent (104.8%) and Gravesham (100.5%) are the nation’s new-build value premium hotspots, the place the common new dwelling sells for greater than double that of current properties.
Largest new-build value premium will increase
The North East additionally ranks prime when it comes to the biggest improve within the value premium seen throughout the new-build market. The area has seen a 14.1% improve in new-build value premiums when in comparison with this time final 12 months.
Wales ranks second with new dwelling premiums climbing 13.3% within the final 12 months from 36.2% to 49.5%, with the East Midlands once more finishing the highest three at a regional stage with a 13.2% improve.
Harlow additionally ranks prime at a neighborhood stage, with the premium paid for brand new properties rising by 10.2% within the final 12 months, whereas the Metropolis of Aberdeen (9.9%) and East Ayrshire (9.9%) take the second and third spot.
Lee Martin, Head of UK for Unlatch says:
“The pandemic has been notably problematic for the nation’s housebuilders who’ve endured a spread of setbacks, from office restrictions to a steep improve in the price of supplies, whereas making an attempt to fulfill an enormous stage of purchaser demand.
The excellent news is that the brand new properties market is prospering and those who have managed to traverse the difficulties posed by the pandemic could have been handsomely rewarded for his or her efforts.
Urge for food for brand new properties is alive and nicely and never solely do new-build properties proceed to command a wholesome premium within the present market, however the measurement of this premium has elevated notably within the final 12 months alone.
It’s an thrilling time to be within the sector. We’ve seen the usage of revolutionary expertise options proceed to evolve the new-build proposition, not solely serving to housebuilders to streamline the development course of, but additionally enhancing the expertise for consumers when it comes to a sooner, extra manageable transaction course of.
With the federal government additionally opening up the nation’s brownfield websites, we anticipate the brand new properties market to go from power to power in 2022 and past.”
