Stripe Property Group analysed the current cost of a new build home across 12 major UK cities and how this cost differs compared to the surrounding commuter belt of each city.
The research shows that on average, a city centre new build will set you back £256,124 in the current market. In contrast, purchasing within a local authority in the surrounding commuter belt will set you back an average of £253,072 – a saving of £3,053 or -1.2%.
The biggest new build commuter belt saving is found outside of Edinburgh. Purchasing a new home in the city centre will currently cost you £326,703, while looking to Edinburgh’s surrounding areas sees this price drop to an average of £244,817.
This means new build homebuyers can save a huge 25% by looking beyond the city, a price reduction that equates to a staggering £81,886 less than purchasing within Edinburgh itself.
Cardiff’s commuter belt offers the second largest new build saving, with new homes surrounding the city coming in at an average of £210,142 . This is some -17.5% below the cost of buying new in the city itself, saving homebuyers £44,477.
New-build buyers in London can save -11.6% by looking to the commuter belt, with the average new build costing £62,470 less – the second largest monetary saving of all cities. Buying outside the city centre will also see you pay -8% less in Newcastle and -5% less in Leeds.
However, in many of the cities analysed, a new build home will actually cost you less in the city itself compared to the commuter belt.
In Nottingham, a new home in the surrounding commuter belt is actually 33% more expensive than the city centre.
The cost of buying new in the commuter belt surrounding Birmingham (16.5%), Liverpool (14.2%), Sheffield (8.3%), Glasgow (6%), Manchester (5.2%) and Bristol (4.8%) also comes in higher than the average new-build cost in the city itself.
Managing Director of Stripe Property Group, James Forrester said, “New homes are popular amongst many buyers who value the benefits they bring above and beyond the regular market, such as help climbing the ladder via buying schemes such as Help to Buy, the lower running costs and the modern amenities they boast.
“With the advantages they bring to first-time buyers in particular, it’s imperative that the government remains focussed on the delivery of new housing, whether it be via the regeneration of existing city centres, or by delivering new developments across the commuter belt and beyond.
“Of course, they understandably come with a price premium attached and so many buyers may have to look further afield in order to climb the new build property ladder.
“Looking outside of a major city to the surrounding commuter belt is one way to often reduce the cost of buying but, as our research shows, it won’t always mean a more affordable home.
“In fact, in many cities such as Birmingham, where there has been a high level of regeneration in recent years, there’s a wealth of new homes springing up to suit all budgets. So not only can you reap the rewards of buying a new build, you can do so in a central location without the need of commuting in and out of the city.”
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