Analysis of government house price data by Unlatch has revealed that the property price premium paid by new-build homebuyers has increased by 10.8% in the last year, with these homes now commanding 40.2% more than existing properties.
At an average price of £351,002, new-builds in the UK were found to be 40.2% (£100,591) more expensive than the average existing property (£250,411).
A year ago, the average new-build price premium sat at 29.3%, meaning that the price gap between new homes and the existing market has grown by 10.8% in the last year alone.
The North East ranked top, as new homes cost 65.4% more on average compared to the wider market.
Scotland was also high on the list, with a premium of 57%, while new-build premiums in the East Midlands also sat above 50% (52.5%).
At a local level, Harlow (114.9%), Blaenau Gwent (104.8%) and Gravesham (100.5%) are the nation’s new-build price premium hotspots, where the average new home sells for more than double that of existing properties.
The North East also ranked top in terms of the largest increase in the price premium seen across the new-build market; the region has seen a 14.1% increase in new-build price premiums when compared to this time last year.
Wales ranked second, with new home premiums climbing 13.3% in the last year from 36.2% to 49.5%, with the East Midlands again completing the top three at a regional level with a 13.2% increase.
Harlow also ranked top at a local level, with the premium paid for new homes increasing by 10.2% in the last year, while the City of Aberdeen (9.9%) and East Ayrshire (9.9%) take the second and third spot.
Lee Martin, head of UK for Unlatch, said: “The pandemic has been particularly problematic for the nation’s housebuilders who have endured a range of setbacks, from workplace restrictions to a steep increase in the cost of materials, while attempting to satisfy a huge level of buyer demand.
“The good news is that the new homes market is thriving and those that have managed to traverse the difficulties posed by the pandemic will have been handsomely rewarded for their efforts.
“Appetite for new homes is alive and well and not only do new-build properties continue to command a healthy premium in the current market, but the size of this premium has increased notably in the last year alone.
“It’s an exciting time to be in the sector. We’ve seen the use of innovative technology solutions continue to evolve the new-build proposition, not only helping housebuilders to streamline the construction process, but also improving the experience for buyers in terms of a faster, more manageable transaction process.
“With the government also opening up the nation’s brownfield sites, we expect the new homes market to go from strength to strength in 2022 and beyond.”