The latest research from new build snagging company, HouseScan, has revealed where new build homebuyers have enjoyed the largest return on their investment in the last five years, as the strongest pockets of the new build market see prices boom by as much as 48%.
HouseScan analysed new build house price growth across the sector and found that with a current average of £302,927, new build property prices across the UK have jumped 27% since 2015; comfortably outpacing the 20% increase seen across the existing market.
This growth has been driven by the Midlands where new build house prices have climbed by 35% and 32% across the East and West Midlands respectively.
London has seen the lowest rate of new build house price growth in the last five years. Despite this, new build homeowners in the capital have still enjoyed a 17% uplift in the value of their property.
Again a greater rate of growth than the 13% seen across the existing market which is a trend seen across all regions of the UK.
Highest five year new build growth
Corby in the East Midlands is the hottest spot in the UK for new build house price growth in the last five years. The area has seen new build property prices boom by 48% since 2015, far higher than the 36% seen across the regular market.
Newport in Wales and Salford in the North West have also seen some of the strongest new build house prices growth in this time, up 46%. Both respectively joined in their regions by Monmouthshire (44%) and Manchester (43%).
Nuneaton and Bedworth, Oadby and Wigston, Harborough, Tamworth and Tameside also rank in the top 10 areas for new build house price appreciation since 2015, having also seen prices increase by 43%.
In London, Redbridge ranks top with a 31% uplift, with Barking and Dagenham (29%), Newham, Bexley and Havering (28%) also performing well.
Biggest increases vs existing market
When it comes to new build house price growth vs the regular market, West Suffolk has seen the strongest performance. In the last five years, new build values have increased by 38%, 16% more than the 12% increase seen across the regular market.
Oldham, Glasgow, the City of London and Gosport have also seen some of the strongest new build price performances when compared to the regular market, with new build growth outstripping the regular market by 14% since 2015.
Founder and Managing Director of HouseScan, Harry Yates, commented: “Despite the problematic landscape created due to Covid, the new build market remains a strong investment for UK homeowners, with values continuing to not only climb but doing so at a far greater rate than existing bricks and mortar.
“While an initial investment in a new build property will require homebuyers to pay a premium, it’s worth every penny in the long term. Even against the backdrop of a global pandemic and a period of prolonged political uncertainty caused by the EU Referendum, new build values have remained resilient and registered some extremely strong uplifts over the last five years.”