Posts with tag: house price

New research highlights why and where to invest in new-build homes

Published On: June 24, 2020 at 8:03 am


Categories: Property News

Tags: ,,,

Have you been considering investing in a new-build property? New research from property developer StripeHomes has been conducted to pinpoint the best areas for such an investment.

The research looked at price premiums, affordability, and house price growth.

New-build price premiums

This research found that the average costs of a new-build in the UK is currently £302,749. This is 33% more than the existing UK house price. Looking at reginal new-build price premiums, it is 60% higher in the North East, 45% in the North West, and 34% in the East of England. London shows the smallest gap at 10%.

Most affordable

It is possible to find new-builds that are more affordable than buying an existing property. StripeHomes says there are as many as 40 UK areas where this is possible. Surrey Heath is top of this list, with the average new-build costing £281,973 (27% cheaper).

The lowest average cost for a new-build can be found in Hyndburn, at £97,939. Close behind are North Ayrshire (£115,305) and Burnley (£122,193). 

Higher house price growth

For those looking to invest and sell on, this research also looks at the appreciation in property values. In the last year, the average UK new-build has increased by 7.3%, compared to just 1.5% for existing homes. 

StripeHomes reports that new-build house price growth has increased by 6-8% across every UK region in the last year. Meanwhile, the market for existing property has only seen a growth of 3% in the best performing regions.

Strong growth has been noted for London, where new-builds are up 7.6%, compared to 1.2% for existing properties. The South East, East of England, South West and North East have also seen some of the strongest new-build house price growth.

Managing director of StripeHomes, James Forrester, commented: “Opting to purchase anything brand new is going to cost you more but when it comes to new-build homes, the premium is often justified and well worth the additional cost. 

“Buying a new-build comes with a whole host of benefits, not just an easier, chain-free sales process with the ability to move straight in. There are a host of incentives available such as paid for stamp duty and help for first time buyers, as well as the fact that new-build homes are often better quality, more energy-efficient, and require little to no maintenance for a good number of years.

“However, the real benefit of a new-build is the appreciation of its value. Despite the tough market conditions seen pretty much since the Brexit vote itself, new-build values have continued to go from strength to strength, far outperforming growth seen in the existing sector.  

“So not only will you purchase a far superior property, but even in areas with the highest new-build premium, it will only take a matter of years before you’re likely to recoup the additional price paid in house price growth.”

All data on new-build and existing house prices sourced from the ONS.

invest in new-build homes
invest in new-build homes

Government UK House Price Index shows ‘London market’s head still in a vice’

Published On: October 21, 2019 at 8:20 am


Categories: Property News

Tags: ,,

House prices increased by 1.3% in the year to August 2019, according to the latest HM Land Registry’s UK House Price Index summary.

The August 2019 index also reports:

  • Properties reached an average price of £234,853 in the UK
  • The monthly price change for properties in the UK was 0.8%
  • House price growth was strongest in Wales where prices increased by 4.5% in the year to August 2019
  • London saw the lowest annual growth, with prices falling by 1.4% over the same year
  • Prices in the South East fell by 0.6% in this period

This index is calculated by the Office for National Statistics (ONS) and Land & Property Services Northern Ireland. The data is provided by HM Land Registry, Registers of Scotland, The Land & Property Services/Northern Ireland Statistics & Research Agency and the Valuation Office Agency.

Lucy Pendleton, founder director of independent estate agents James Pendleton, comments: “The crucial London market’s head is still in a vice but offers are coming forward, which suggests buyers don’t believe this period of consolidation will last too long. 

“Growth may be almost static nationwide but it would be even worse were it not for the UK’s army of first-time buyers who are putting a floor under prices with their can-do attitude.

“Despite a nuclear winter’s worth of uncertainty, it’s the younger generation who are still forging ahead as if nothing was wrong. They have the longest time horizon and we know that they have continued to transact in huge numbers lately.

“This young blood continues to support the national market, bolstering the values of lower and mid-tier properties in London where they benefit from enhanced Help to Buy, and where vendors selling above £1m continue to face the fiercest haggling.”

The next publication of the UK House Price Index from HM Land Registry will be released in November.