The latest research by the property developer, StripeHomes, has revealed which parts of the new build property market are home to the most significant property price premiums, despite the pandemic pressure applied to the market in 2020.
The figures show that across Britain as a whole, new build property prices have taken a dip since January, down -2.9%. However, the market remains strong where new build property prices are concerned, with new build homes still commanding a 26% price premium when compared to the average cost of an existing property.
There’s no doubt that Covid has had an impact on the new build sector and London has borne the brunt of this where new build prices are concerned.
The average new build property price in the capital has fallen by 5% since the start of the year, but London is also the only region to see the average cost of a new build sink below that of an existing property. Currently, the average London new build price sits at £482,421, 1% lower than the average price paid for existing properties (£487,132).
So where is home to the most pandemic proof new build property market?
The North East is currently proving the best investment where new build homes are concerned. The current North East new build is commanding an average of £187,208. While this is the most affordable of all regions, it’s also 47% more than the £127,042 paid for existing homes across the region.
New builds in Scotland are currently commanding a 40% price premium when compared to the average price of existing stock.
The East Midlands and West Midlands are also home to some of the most substantial new build price premiums, with the average new build currently selling for 35% and 34% more than existing stock in each region.
Managing Director of StripeHomes, James Forrester, commented: “Like every other aspect of life, the new build property sector has faced its fair share of challenges as a result of the current pandemic. London has been hit particularly hard, and new build homes are now selling for less than existing stock, which is unheard of across the sector.
“However, the new build sector continues to prove an excellent investment, and despite the restrictions imposed by Covid, new build stock continues to command a healthy price premium in many other regions.
“The North East is leading the way in this respect. Not only is the region home to the lowest new build house price, which is great for aspirational buyers, it also presents the most robust price premiums for new build homes when compared to existing stock.
“As a result, we’ve seen a consistently strong level of investment across the region despite the broader challenges posed by the current landscape, which bodes very well for the future of the North East property market.”