New Build Premium Gap Widening

Buyers must pay huge premiums in order to purchase their dream new-build home.

New build homes cost homebuyers 19% more than a pre-owned property of the same size, and may sometimes even cost a staggering 50% extra, according to a new survey.

The survey was conducted by the Monmouthshire Building Society, which looked at the different markets in England and Wales in 2019.

They revealed that new build properties in the North, Wales and East Midlands were found to be more costly than pre-owned properties.

The survey found that new flats/maisonettes in the North, Wales and West Midlands cost 50% or more than their pre-owned counterparts.

However, new-build detached properties were cheaper than pre-owned detached homes in Greater London, the South East, the North West and the South West.

The building society said 11.5% of all homes sold in England and Wales were new builds.

Wales out performed in terms of new build sales as only 6.6% of all sales were new build while Greater London performed the best with 13.7 per cent of all sales being new builds.

The construction industry has endured turbulent times, before the General Election in December 2019, new build home construction had fallen considerably in the third quarter of 2019.

Meanwhile, it seems the majority of the British people favour new build construction, as 57% of the population are looking for more new homes being built in their local area.

Furthermore, following the Election and more certainty over Brexit, sentiment within the construction sector is a lot more optimistic – as almost half of all respondents in the sector now fee as though their business will grow in 2020.

Today's Conveyancer