New-build house prices in the East of England have surged by 34% to £373,829 in the past five years, the latest research by property developer StripeHomes has revealed.
The East Midlands and West Midlands also saw the price of new-builds rise by 33% and 31% respectively – highlighting how the asset class has performed well despite talk of how buyers need to pay a ‘new-build premium’.
The North East was the region home to the lowest new-build growth, although prices have still increased by 16%. The region has been one of the most talked-about areas for buy-to-let investors in recent years. Yet, while regional new-build growth has been lower than others, pockets of the region such as North Tyneside (22%), South Tyneside (21%) and Hartlepool (21%) have performed particularly well.
London has seen the second-lowest rate of new-build house price growth in the last five years, although again, prices are still up 22%.
While the East of England is the regional leader for new-build performance, on a more local level prices are surging across different regions across the UK.
Corby in Northamptonshire, Salford in Greater Manchester, Thurrock in Essex, and Newport in Wales all saw new-build prices rise by 44% in five years – highlighting how new-build property has performed well across much of the nation.
Even in London, where new-build growth has been subdued, some areas still recorded strong appreciation. Indeed, in Newham new-builds have surged in price by 40% in five years, followed by Barking and Dagenham at 39%, as well as Redbridge at 38%.
If this performance continues, new-build will serve to be a solid investment choice for homeowners and investors in the years to come.
Managing Director of StripeHomes, James Forrester said, “When it comes to investing in bricks and mortar, the new-build sector remains one of the best in terms of a consistent return through buoyant house price growth.
“In the past five years, almost every area of the UK has seen new-build prices increase despite the impact of drawn-out political uncertainty caused by Brexit and multiple general elections.
“As a result, the sector remains popular amongst both new-build investors and developers, as well as residential homebuyers.”