New build house prices boom, out performing the regular market across the UK

The latest research from new build snagging company, HouseScan, has revealed where new build homebuyers have enjoyed the largest return on their investment in the last five years, as the strongest pockets of the new build market see prices boom by as much as 48%.

HouseScan analysed new build house price growth across the sector and found that with a current average of £302,927, new build property prices across the UK have jumped 27% since 2015; comfortably outpacing the 20% increase seen across the existing 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.

London has seen the lowest rate of new build house price growth in the last five years. Despite this, new build homeowners in the capital have still enjoyed a 17% uplift in the value of their property.

Again a greater rate of growth than the 13% seen across the existing market which is a trend seen across all regions of the UK.

Highest five year new build growth

Corby in the East Midlands is the hottest spot in the UK for new build house price growth in the last five years. The area 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%. Both respectively joined in their regions by Monmouthshire (44%) and Manchester (43%).

Nuneaton and Bedworth, Oadby and Wigston, Harborough, Tamworth and Tameside also rank in the top 10 areas for new build house price appreciation since 2015, having also seen prices increase by 43%.

In London, Redbridge ranks top with a 31% uplift, with Barking and Dagenham (29%), Newham, Bexley and Havering (28%) also performing well.

Biggest increases vs existing market

When it comes to new build house price growth vs the regular market, West Suffolk has seen the strongest performance. In the last five years, new build values have increased by 38%, 16% more than the 12% increase seen across the regular market.

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.

Founder and Managing Director of HouseScan, Harry Yates, commented:

“Despite the problematic landscape created due to Covid, 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.

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. 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.”

Table shows average new build house price growth vs existing in since 2015 by UK region
Location	New Build House Price (Sep 2015)	New Build House Price (Sep 2020)	Change (%)	Existing House Price (Sep 2015)	Existing House Price (Sep 2020)	Change (%)	NB Vs Existing Change (%)
East Midlands	£207,318	£279,254	35%	£158,730	£198,020	25%	10%
West Midlands Region	£216,299	£284,732	32%	£164,694	£204,338	24%	8%
Wales	£173,370	£227,409	31%	£138,216	£167,794	21%	10%
North West	£181,896	£238,034	31%	£140,501	£171,813	22%	9%
East of England	£292,199	£379,876	30%	£243,997	£297,868	22%	8%
South West	£251,525	£323,942	29%	£222,578	£269,229	21%	8%
Yorkshire and The Humber	£172,589	£221,114	28%	£142,806	£170,099	19%	9%
South East	£314,842	£394,580	25%	£282,429	£331,804	17%	8%
Northern Ireland	£136,310	£169,923	25%	£113,209	£136,534	21%	4%
Scotland	£180,079	£224,341	25%	£136,442	£158,057	16%	9%
North East	£168,832	£200,486	19%	£119,697	£131,135	10%	9%
London	£432,855	£507,961	17%	£440,322	£496,541	13%	5%
England	£254,776	£323,994	27%	£213,706	£256,239	20%	7%
United Kingdom	£237,132	£302,927	28%	£199,939	£239,417	20%	8%

Table shows the areas of the UK to have seen the highest levels of new build house price growth since 2015
Location	New Build House Price (Sep 2015)	New Build House Price (Sep 2020)	Change (%)	Existing House Price (Sep 2015)	Existing House Price (Sep 2020)	Change (%)	NB Vs Existing Change (%)
Corby	£187,366	£277,088	48%	£135,650	£184,677	36%	12%
Newport	£179,476	£262,816	46%	£135,166	£183,020	35%	11%
Salford	£147,374	£215,255	46%	£125,344	£170,867	36%	10%
Monmouthshire	£277,300	£399,382	44%	£208,918	£280,816	34%	10%
Manchester	£158,788	£227,756	43%	£143,534	£190,107	32%	11%
Nuneaton and Bedworth	£231,465	£331,812	43%	£137,563	£182,618	33%	11%
Oadby and Wigston	£210,436	£301,442	43%	£171,217	£224,470	31%	12%
Harborough	£257,042	£367,027	43%	£231,367	£304,314	32%	11%
Tamworth	£163,321	£233,191	43%	£148,576	£198,759	34%	9%
Tameside	£155,510	£221,962	43%	£120,307	£158,944	32%	11%

Table shows the areas of London to have seen the highest levels of new build house price growth since 2015
Location	New Build House Price (Sep 2015)	New Build House Price (Sep 2020)	Change (%)	Existing House Price (Sep 2015)	Existing House Price (Sep 2020)	Change (%)	NB Vs Existing Change (%)
Redbridge	£432,718	£568,526	31%	£353,981	£427,579	21%	11%
Barking and Dagenham	£304,338	£393,922	29%	£240,342	£297,626	24%	6%
Newham	£387,244	£495,866	28%	£299,024	£366,494	23%	5%
Bexley	£271,970	£347,377	28%	£287,913	£345,815	20%	8%
Havering	£318,651	£406,641	28%	£298,502	£370,626	24%	3%
Waltham Forest	£383,855	£485,549	26%	£370,973	£458,557	24%	3%
Croydon	£298,043	£369,353	24%	£321,441	£380,378	18%	6%
Hackney	£531,132	£656,248	24%	£522,331	£606,239	16%	7%
Greenwich	£341,451	£421,329	23%	£341,767	£401,145	17%	6%
Lewisham	£343,170	£416,324	21%	£370,766	£433,084	17%	5%
Sutton	£338,688	£409,347	21%	£333,948	£382,605	15%	6%

Table shows the areas of the UK to have seen the largest rate of new build house price growth vs the existing market
Location	New Build House Price (Sep 2015)	New Build House Price (Sep 2020)	Change (%)	Existing House Price (Sep 2015)	Existing House Price (Sep 2020)	Change (%)	NB Vs Existing Change (%)
West Suffolk	£264,232	£365,278	38%	£213,037	£260,185	22%	16%
Oldham	£143,802	£199,880	39%	£113,836	£142,353	25%	14%
City of Glasgow	£145,414	£200,870	38%	£114,058	£141,749	24%	14%
City of London	£797,565	£885,507	11%	£758,449	£737,517	-3%	14%
Gosport	£184,739	£253,658	37%	£170,968	£211,499	24%	14%
City of Edinburgh	£242,501	£328,282	35%	£225,877	£275,498	22%	13%
Blackburn with Darwen	£147,936	£193,127	31%	£100,078	£118,245	18%	12%
High Peak	£200,857	£277,820	38%	£164,394	£207,234	26%	12%
Cannock Chase	£196,768	£269,577	37%	£143,373	£178,889	25%	12%
Oadby and Wigston	£210,436	£301,442	43%	£171,217	£224,470	31%	12%
North East Derbyshire	£225,632	£310,354	38%	£159,860	£200,833	26%	12%
Greater Manchester	£161,863	£228,517	41%	£140,768	£182,039	29%	12%
Maldon	£278,660	£376,088	35%	£273,508	£336,762	23%	12%
Rossendale	£180,041	£254,722	41%	£114,270	£148,189	30%	12%
Corby	£187,366	£277,088	48%	£135,650	£184,677	36%	12%
Merthyr Tydfil	£141,480	£187,819	33%	£85,587	£103,569	21%	12%
Barnsley	£126,972	£170,876	35%	£106,579	£131,012	23%	12%
Folkestone and Hythe	£239,883	£332,036	38%	£207,014	£262,530	27%	12%