x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Parts of the UK see new-build price premiums hit 108%, research finds

Springbok Properties, a Manchester-based fast sale estate agent, has revealed that new-build homes experience a huge premium in certain areas of the UK.

Its research analysed the cost of opting for a new-build across the UK property market and how this compares to existing housing stock. From this, it calculated where is home to the highest new-build premiums.

The current average price of a new-build property, according to data from Land Registry, is £209,176, compared to £224,729 for existing properties - a mark-up of 29%.

Scotland was home to the highest premium, with new-builds costing 41% more than existing homes, falling to 36% in Wales, 27% in England and 25% in Northern Ireland.

Although it’s perhaps not surprising that a brand-new property will typically carry a higher price tag, recent research highlighted that 40% of new-build homeowners were displeased with the quality of their property, with snagging lists often finding as many as 100 issues with a brand new home.

Despite this, the latest research from Springbok has found that – in some areas of the country – homebuyers are paying ‘eye-watering premiums’ for new-build homes when compared to traditional housing stock. In many cases, this could be for a property that is less than fit for purpose.

The worst-case scenario, according to Springbok, is in Harlow, Essex, where the average new-build costs £551,089, 108% more than the average cost of £265,249 for existing stock.

Blaenau Gwent in Wales is the next worst area, with a 96% mark up between the new-build price of £182,313 and the cost of existing property, which currently stands at £92,814.

The third worst area is Gravesham in Kent, home to a 95% new-build premium, while Preston in Lancashire also has a new-build premium of more than 90%.

The top 6 is completed by Rochford and Torfaen in Wales (both home to a premium of 88%), closely followed by Middlesbrough in the North East and West Dunbartonshire in Scotland (both 85%) in seventh and eighth place. Caerphilly and Merthyr Tydfil take the final two spots in the top 10 worst areas for new-build property price premiums in the UK at 81% and 80% respectively. 

London homebuyers, for once, aren’t the focus of bad news, with the average difference in price for a new-build and an existing property in the capital standing at just 3%. Newham is the borough with the largest gap (at 38%), while East London neighbours Redbridge (35%) and Barking and Dagenham (33%) also ranked high.

“While there are many new builds that will be delivered to the standard expected, the thought of forking out way above the odds for a property that falls way below standard is a nightmare scenario for the nation’s homebuyers,” Shepherd Ncube, founder and chief executive officer of Springbok Properties, said.

“As the figures demonstrate, in some areas, new build properties are going for a hefty market premium and this isn’t confined to one or two locations, it’s the length and breadth of Britain at a range of market values.”

He added: “Of course, if there is a need for housing at a higher price band or quality in any area it should be built. However, one has to question the consistent failures of many property developers when delivering these homes to the standard promised while still charging such a high price compared to the rest of the market.”

See table below for the current rankings: 

Area

New Build Average

Existing Stock Average

Difference

United Kingdom

£290,176

£224,729

29%

Scotland

£209,455

£148,124

41%

Northern Ireland

£162,760

£130,184

25%

England

£305,490

£241,226

27%

Wales

£215,497

£158,410

36%

Ranking by Biggest Premium UK Wide

Area

New Build Average

Existing Stock Average

Difference

Harlow

£551,089

£265,249

108%

Blaenau Gwent

£182,313

£92,814

96%

Gravesham

£537,276

£275,533

95%

Preston

£237,883

£124,700

91%

Rochford

£639,915

£340,095

88%

Torfaen

£269,431

£143,491

88%

Middlesbrough

£188,112

£101,541

85%

West Dunbartonshire

£182,672

£98,759

85%

Caerphilly

£242,079

£133,980

81%

Merthyr Tydfil

£180,264

£100,233

80%

Nuneaton and Bedworth

£303,310

£168,674

80%

Sunderland

£196,414

£109,887

79%

North Tyneside

£264,295

£148,294

78%

City of Aberdeen

£256,930

£147,031

75%

Rhondda Cynon Taf

£180,319

£103,885

74%

Halton

£242,396

£139,799

73%

Wigan

£221,330

£129,809

71%

North East Lincolnshire

£202,445

£118,740

70%

Exeter

£407,031

£239,805

70%

Knowsley

£210,375

£124,481

69%

Ranking by London Borough

Area

New Build Average

Existing Stock Average

Difference

Newham

£489,067

£354,096

38%

Redbridge

£542,955

£403,230

35%

Barking and Dagenham

£390,602

£294,557

33%

City of London

£845,504

£711,685

19%

Merton

£595,513

£504,258

18%

Havering

£395,854

£355,010

12%

City of Westminster

£1,055,804

£949,121

11%

Hackney

£626,569

£571,846

10%

Hillingdon

£443,828

£405,469

9%

Waltham Forest

£473,650

£433,637

9%

Sutton

£399,173

£369,394

8%

Lambeth

£537,600

£497,587

8%

Kingston upon Thames

£509,835

£472,622

8%

Greenwich

£403,142

£376,263

7%

Bromley

£456,244

£431,473

6%

Tower Hamlets

£453,984

£432,206

5%

Barnet

£525,590

£505,080

4%

Southwark

£491,517

£480,460

2%

Wandsworth

£581,296

£572,144

2%

Ealing

£472,840

£469,234

1%

Camden

£820,987

£817,362

0%

Lewisham

£402,561

£406,113

-1%

Brent

£469,558

£480,997

-2%

Bexley

£329,427

£338,642

-3%

Croydon

£352,003

£362,942

-3%

Enfield

£380,883

£393,861

-3%

Islington

£593,293

£628,053

-6%

Hounslow

£374,519

£402,312

-7%

Haringey

£493,368

£531,684

-7%

Hammersmith and Fulham

£639,196

£695,254

-8%

Harrow

£407,856

£451,344

-10%

Kensington and Chelsea

£1,126,526

£1,281,835

-12%

Richmond upon Thames

£549,185

£649,736

-15%

London

£484,341

£468,699

3%

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up