New build properties are commanding increasingly higher premiums, despite overall market cooling, according to recent research from Sourced Franchise.
The data reveals that the average price premium for a new build home has risen by 20% over the last year, making it now 52% higher than the value of an existing home.
Sourced Franchise’s analysis examined current new build values, comparing them to existing property prices and tracking how these premiums have changed over the last year. The study found that the average British new build is now valued at £425,186, and the current premium sits at 52%, a substantial increase of 20% from the previous year.
Regionally, the North East leads the way in new build house price premiums, with new homes there commanding 83% more than average existing homes, priced at £271,723. Other regions showing premiums of over 60% include Scotland (72%), the East Midlands (66%), the North West (65%), West Midlands (63%), and Wales (62%). London had the smallest new build house price premium at 17%.
In terms of local authorities, Harlow in Essex tops the list, where the average new build is worth 133% more than the average existing home. Other high-ranking areas include Blaenau Gwent (127%), Gravesham (120%), West Dunbartonshire (119%), and Preston (119%).
The North East also saw the largest increase in new build price premiums over the last year, rising by 25%, followed closely by the North West and Scotland, both at 24%. West Dunbartonshire, Harlow, Gravesham, Rochford, and Preston also saw significant growth in this area.
Commenting on the findings, Sourced franchise director Chris Kirkwood said: “It’s fair to say that the residential market is stuck in a rut at present, with increasing interest rates causing many buyers to sit on the fence.” He acknowledged the recent slowdown in market activity and house price growth but emphasised the resilience and growth in the new build sector.
Kirkwood added: “However, the market is far from on its knees and new build properties have not only continued to hold their own when it comes to the price premiums they command, but these premiums have also grown considerably over the last year.”
