Research by Newcastle-based property developer, StripeHomes, has revealed which regions have seen the largest boost in the total value of property sold as a result of the new-build sector.
StripeHomes analysed the Land Registry Price Paid data records to see where the new-build sector was adding the most value to the national property market both in terms of the sum of new-build property sold, and as a percentage of total market values.
41,707 new-build transactions took place in 2020 across England as a whole, with sold prices totalling £15.7bn.
In terms of the total value of new-build homes sold, London predictably sits top with a total of £4.2bn completing in new-build property sales. The South East (£3.2bn) and East of England (£1.9bn) also ranked high where the total value of new-build sales is concerned.
However, the research by StripeHomes shows that while these regions are home to the highest value of new-build transactions, the North East has seen the new-build sector add the most value to the regional property market.
2,180 new-build homes were purchased across the North East in the last year. The total value of these transactions is by far the lowest of all English regions at £513m, however, this new-build contribution accounts for 10.6% of the total value of homes sold in the region.
As a result, the new-build sector in the North East has contributed the most value to the regional market of all regions in England, closely followed by the capital where total new-build value accounted for 9.8% of total property values.
The new-build sector has also brought a big boost to the wider markets in the East Midlands (8.5%), North West (8%) and West Midlands (7.9%), accounting for a considerable proportion of the total sum of property sold in the last year.
In contrast, the South West has seen the lowest value contribution via the new-build sector in the last year. While more than £1.4bn of new-build homes have been sold in 2020, this equates to just 6.2% of the total value of sold property in the region (£22.7bn).
Managing Director of StripeHomes, James Forrester, commented: “It’s probably fair to say that the new-build sector could have fared better over the last year, with sales accounting for just seven per cent of all transactions and the total value of homes sold sitting at just eight per cent of the total market.
“Of course, some of this can be attributed to a problematic landscape caused due to the ongoing pandemic and so we should expect to see a stronger performance this year as we inch towards a greater sense of normality.
“What is great to see is that the far smaller market of the North East is punching well above its weight, with the new-build sector bringing more value to the local property market than any other region.”