Research from the Halifax has shown that the average value of a new build property has increased by 12% over the last five years, and by 40% over the past ten years. The average value of a new build property is now £233,822 – this is 9% higher than the average house price for all UK properties.
Regionally, according to the research, the whole of the UK has seen prices rise over the past decade, with London leading the growth at 57%. However, more recently, prices have shown to be less stable in other regions, with the North, Yorkshire, the Midlands, Wales and the South West all seeing modest decreases in price over the past five years.
The research provides yet more ammunition to arguments about the North/South divide, even when new build properties are taken into account. However, downward price shifts for new build properties seem to be less pronounced than those for older properties.
“In a relatively flat housing market, the new homes market has changed enormously over the past five years. We have seen a lot of positive sentiment towards the new homes market, with various schemes launched to get the house building industry moving and changes in policies and deposit requirements allowing shared equity buyers to participate more fully in the new build market.”
Craig McKinlay, New Mortgages Director for Halifax.
Investors should be wary of the ‘new build premium’ – added value that a new property loses simply by having been lived in. New build properties also tend to be slightly smaller than older properties.
However, new build properties are not likely to require major repairs during the first few years of ownership, and are ‘chain free’, as buyers are not waiting for a seller to move out.
If you would like a quote for a buy-to-let mortgage on a new build property, contact us for a no-obligation assessment of your circumstances.