New build price premiums hit 108% in parts of the UK

August 28, 2019
new build homes colchester essex

Research by national fast sale estate agent, Springbok Properties, has looked at the cost of opting for a new build across the UK property market, how this compares to existing housing stock and where is home to the highest new build property premiums.

Using the latest data from the Land Registry, Springbok found that the current average price of a new build property is £290,176, compared to £224,729 for existing properties, a mark up of 29%.

The highest premium was found in Scotland with new builds costing 41% more than existing homes, dropping to 36% in Wales, 27% in England and 25% in Northern Ireland.

While it may be expected that a brand new property will carry a higher price tag recent research found that 40% of new-build homeowners were unhappy with the quality of their property with snagging lists often finding as many as 100 issues with a brand new home.

The latest research from Springbok has revealed that in some areas of the country, home buyers are paying eye-watering premiums for new build homes when compared to the areas traditional housing stock, for a property that could be less than fit for purpose.

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

Blaenau Gwent is the next worst area, with a 96% mark up between the new build price of £182,313 and the price of existing property (£92,814).

Gravesham in Kent ranks third with a 95% new build premium while Preston in Lancashire is also home to a new build premium of over 90%.

Rochford and Torfaen in Wales are both home to a premium of 88%, followed by Middlesbrough (85%) and West Dunbartonshire in Scotland (85%). Caerphilly and Merthyr Tydfil complete the top 10 worst areas for new build property price premiums in the UK at 81% and 80% respectively.

For once London home buyers aren’t the focus of bad news and on average the difference in price for a new build and an existing property in the capital is just 3%. Newham is the borough home to the largest gap at 38%, with Redbridge (35%) and Barking and Dagenham (33%) also ranking high.

Founder and CEO of Springbok Properties, Shepherd Ncube, commented:  

“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.

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.

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”

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%

 

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