Home Residential PropertyNew Build Here’s where new build prices are soaring for homebuyers and investors

Here’s where new build prices are soaring for homebuyers and investors

by LLP Finance Reporter
26th Aug 20 10:19 am

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.”

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