The strongest pockets of the new build market have seen prices go up by as much as 48% in the last five years, with Corby in the East Midlands the hottest spot in the UK for price growth, new build snagging company HouseScan revealed.
HouseScan founder Harry Yates noted that “despite the problematic landscape created due to COVID-19, the new build market remains a strong investment for UK homeowners, with values continuing to not only climb but doing so at a far greater rate than existing bricks and mortar.”
HouseScan research found that with a current average of £302,927 ($419,446), new build property prices overall across the UK have jumped 27% since 2015, outpacing the 20% increase seen across the regular market.
This growth has been driven by the Midlands where new build house prices have climbed by 35% and 32% across the East and West Midlands respectively.
Corby in the East Midlands has seen new build property prices boom by 48% since 2015, far higher than the 36% seen across the regular market.
Newport in Wales and Salford in the North West have also seen some of the strongest new build house prices growth in this time, up 46%.
Nuneaton and Bedworth, Oadby and Wigston, Harborough, Tamworth and Tameside rank in the top 10 areas for new build house price appreciation since 2015, having seen prices increase by 43%.
London has seen the lowest rate of new build house price growth in the last five years but new build homeowners in the capital have still enjoyed a 17% uplift in the value of their property.
In London, Redbridge ranks top with a 31% uplift. A new build that cost £432,718 in 2015 was priced at £568,526 in 2020. Barking and Dagenham (29%), Newham, Bexley and Havering also performing well.
When it comes to new build house price growth versus the regular market, West Suffolk has seen the strongest performance. In the last five years, new build values have increased by 38%, whereas the regular market only saw a 22% uplift.
Oldham, Glasgow, the City of London and Gosport have also seen some of the strongest new build price performances when compared to the regular market, with new build growth outstripping the regular market by 14% since 2015 in all these areas.
“While an initial investment in a new build property will require homebuyers to pay a premium, it’s worth every penny in the long term,” said Yates.
“Even against the backdrop of a global pandemic and a period of prolonged political uncertainty caused by the EU Referendum, new build values have remained resilient and registered some extremely strong uplifts over the last five years,” he added.
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