Research shows price gap is widening between new and existing homes

The property price premium paid for new-build homes has increased by 10.8% in the last year, with new homes now commanding over 40% more than existing properties across the UK, according to research by Unlatch.

The analysis by the new-build sales optimisation platform Unlatch found that the average price of a new-build in Britain is currently £351,002 while an existing property fetches £250,411 on average.

In 2020 the average new-build price premium sat at 29.3%, rising by over 10% in the space of a year.

The analysis found that the North East ranks highest for new-build price premiums, with the average new home costing 65.4% more on average compared to the wider market.

Lee Martin, Head of UK for Unlatch, said: ‘The pandemic has been particularly problematic for the nation’s housebuilders who have endured a range of setbacks, from workplace restrictions to a steep increase in the cost of materials, while attempting to satisfy a huge level of buyer demand. The good news is that the new homes market is thriving and those that have managed to traverse the difficulties posed by the pandemic will have been handsomely rewarded for their efforts.

‘Appetite for new homes is alive and well and not only do new-build properties continue to command a healthy premium in the current market, but the size of this premium has increased notably in the last year alone.

‘It’s an exciting time to be in the sector. We’ve seen the use of innovative technology solutions continue to evolve the new-build proposition, not only helping housebuilders to streamline the construction process, but also improving the experience for buyers in terms of a faster, more manageable transaction process. With the government also opening up the nation’s brownfield sites, we expect the new homes market to go from strength to strength in 2022 and beyond.’

In related news, keyworkers in Derbyshire are the first to benefit from the government’s First Homes scheme, which offers homes at a discount of at least 30% of the market price to local first-time buyers and keyworkers.

Photo by James Feaver