How do the prices of new build properties compare to existing properties?
More new housing developments go up around the country each month, in an attempt to meet increasing demand.
However, new build properties come at a cost, often with a premium price tag compared to existing properties, with the average new build in the UK currently costing £306,997 on average, which is 26.7% more than what you would expect to pay for an existing house.
So, how does this look around the country? And are there any places where new builds are actually cheaper?
The team at Compare My Move has looked at house price data across the UK to find out the price difference between new builds and existing properties.
If you are looking to buy a new home, whether it’s a new build or an existing property, at Compare My Move we’re here to save you time and money on your move. Whether you’re looking to compare removal, surveying or conveyancing quotes we can help.
The areas with the biggest premiums for new builds
The gap between new builds and existing properties was widest in Harlow, Essex, which was one of two authorities where, on average, you’ll pay twice as much if you want a newly built house, with the other one being Blaenau Gwent, in Wales.
The area with the biggest overall increase in price between new build and existing properties was Rochford, another Essex town, where the new build premium currently stands at a whopping £302,847.
The areas with the biggest premiums for existing properties
While the majority of the country has to pay extra if they want to buy a brand new property, there were actually 38 local authorities (10.4%), where it was cheaper to buy a new build home.
These areas were almost exclusively found in the South, in areas with generally high house prices overall, such as Kensington and Chelsea in London, which is the priciest area in the whole country, where new build properties are £169,207 cheaper than existing ones.
Surrey Heath has the biggest gap, with older properties costing just over a quarter less than their newly-built equivalents.
The cheapest areas to buy a new build property
While you do tend to have to pay a premium for a new build property, for buyers in certain areas, it’s a lot cheaper to secure one than in others.
The cheapest places to buy a new build were all located in either the North of England or Scotland, with Hyndburn, in Lancashire, being the only authority where the average new build costs less than £100,000.
This was followed by North Ayrshire in Scotland at £126,036 and Burnley (also in Lancashire) at £128,613.
The most expensive areas to buy a new build property
While new build properties were actually cheaper than existing ones in some areas, it was often the case that these were among the most expensive places to buy a new build in the country.
All of the most expensive places to buy a new build were located in the South, with the most expensive of all being found in prime central London locations such as Kensington and Chelsea (£1,167,805), Westminster (£1,006,564) and the City of London (£930,033).
All average house prices sourced from the UK House Price Index (December 2020). Note that data was unavailable for authorities in Northern Ireland.
At CompareMyMove we’re here to save you time and money on your move. As our study shows, in some areas new builds can turn out to be the most expensive property type. If you are thinking of buying a new property, whether it’s a new build or an existing build, you will have to pay conveyancing, surveying and removal fees.
We are here to help you find quotes for conveyancing solicitors and other moving costs. House buying solicitor fees can add a substantial amount to the cost of a move, and CompareMyMove can help you save.