New builds command premium

New-build properties remain overwhelmingly popular despite a small drop in the number of starts in the past year.

New home starts slip

Work was started on 137,800 new-build homes in England during the 2022–23 financial year to the value of £55bn1, which represents a 1.4% year-on-year decline.

Generally, a new-build house or flat is counted as a ‘start’ from the moment on-site construction begins. For example, when the foundations are laid for a block of 100 flats, that is counted as 100 ‘starts.’

New-build premium skyrockets

The average new-build house price, meanwhile, rose by 13.8% on an annual basis.

A separate study has shown that, with the average new build now valued at £425,186, the premium commanded by new homes currently sits at 52%. This astronomical difference follows a 20% increase in the premium over the course of the last year alone.

London leads the way

Regionally, the annual change in the number of new build starts ranges from a 13.4% increase in London to a 14% drop in Yorkshire & Humber. In terms of price growth, the South West (16%) and East Midlands (15.9%) were out in front, with London (9.3%) recording the lowest growth.

1Sourced Franchise, 2023

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments