According to recent research by APRAO, new-build house price premiums across Britain reached a ten-year high in 2023, after a continuous decline over the previous four years.
This analysis, drawing on government data, indicates that new-builds commanded a premium of 29.9% last year, a significant increase from the 23% average in 2013.
Regionally, all but London saw an increase in premiums, with the North East experiencing the highest at 56%. Scotland and the East Midlands also saw premiums above 40%.
In contrast, London’s new-builds had a marginal premium of 0.2%, although this still marks an improvement from previous years where existing homes outperformed new builds.
Daniel Norman, CEO of APRAO, said: “New homes have always been priced higher than existing stock, but the rise in new-build house prices over the last year has been exceptional.
“It has not only driven the recovery of the market but has pushed new home premiums to the highest levels in the last decade.”
