House prices: Expert discusses 'interesting' pricing differences
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Affordable housing has been at the forefront of the Government’s ‘levelling up’ agenda in a bid to solve the UK’s housing crisis. With new build properties being erected across the country, first-time buyers are beginning to get a foot in the door through Government financing schemes. An estimated 43,290 new build homes were completed in the final quarter of 2021 alone – but where in the UK will you find the cheapest newly built properties?
House prices reached a new high in 2021, with average growth reaching nine percent across the UK.
With the demand for homes remaining consistently high into 2022, research from Unlatch has revealed there is still a strong appetite for new build homes.
Speaking exclusively to Express.co.uk, Mike Bickerton, head of New Homes at Colliers said: “With the Help to Buy scheme for new builds coming to an end in April 2023, there’s going to be accelerated interest in these properties now.
“Buying new build homes gives purchasers peace of mind that they’re not going to be paying any extra over the next few years, because there’s always a two year snagging warranty, as well as a ten year house builders warranty.
“Also, developers offer great incentives such as stamp duty contributions which make these properties even more attractive to buyers.”
How much does it cost to buy a newly built property?
Across the UK, 35 percent of new-build homes currently on the market have already been purchased by eager buyers – but how does it affect the cost of these modern properties?
Analysis from the Government’s UK House Price Index for September 2021 found that new builds were selling for 14 percent more on average compared to those sold during the same period in 2020.
The average price for a new build in August 2021 was recorded as £348,188 while existing properties sold for a lower price of £257,188, according to land registry data.
With the average price of a new build home stretching far beyond the cost of dated homes, there is still a lot to say about the affordability of these new properties.
Where are new build homes the cheapest?
Unsurprisingly, the north-south divide remains prevalent in the new build housing market as well as existing property sales.
North East England
According to the most recent land registry data, the North East is the most affordable region for first time buyers to invest in a new build home.
With the lowest average cost of £230,312, residents in areas such as County Durham, Gateshead, Newcastle and Sunderland will benefit from the lowest national prices.
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Yorkshire and The Humber
Costing almost £27,000 more than properties in the North East of England, Brits looking to purchase a new home in Yorkshire and The Humber will have to foot a more generous asking price.
According to land registry data from August 2021, new build homes in this region fetch an average of £256,963.
Scotland comes in close third with the average sale of a new property raking in £273,990.
Existing homes across the country sell for a much lower price on the housing market.
Latest figures show existing properties cost an average of £175,705 – around £98,000 less than a newly built home.
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Placing fourth in the top five cheapest regions to purchase a new build property is Wales.
Buying a home here will cost an average of £274,062 for home-buyers eager to invest in a modern home.
North West England
There is a larger disparity between the North East and the North West regions of England when it comes to new-build sale prices.
With an average sale value of £274,683, new build properties in the North West will cost home-buyers around £44,000 more than their North East competitors.
The full ranking is as follows:
- North east – £230,312
- Yorkshire and The Humber – £256,963
- Scotland – £273,990
- Wales – £274,062
- North West – £274,683
- East Midlands – £324,593
- West Midlands – £329,027
- South West – £369,813
- East of England – £433,917
- South East – £451,730
- London – £551,630
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