New-build market continues to shine as prices jump 24% in 12 months

Jan
13

2022 has seen property developers come under increasing pressure, as the cost of living crisis drives people to look for more energy efficient homes. The United Kingdom in particular has struggled to meet the efficiency targets outlined by global partners, with much of the region’s homes predating even the establishment of the United Nations.

Many of the United Kingdom’s pre-war homes utilises poor thermal insulation, and in some cases are ill-equipped to use more efficient heating systems. As such, the government has offered many incentives to those looking to improve their homes carbon footprint, but with many adjoining properties offering difficult access to cavity wall improvements, the best options appear to still be new-build projects.

Figures from Unlatch indicate that the popularity of new homes is growing, with average price of new-build properties up by as much as 24% since last Christmas.

In Britain, the average cost of a newly constructed home around Christmastime was £339,565. The most recent figures available show a growth of £58,156 or 17.1%, bringing this figure to £397,720.

The North East experienced the largest regional new-build price increase, rising by 19.1% to £254,594, while Wales saw an 18.8% increase, bringing the average regional price to £311,152.

Price rise in the North West has been 18.6%, while it has been over average in the South West (18.3%), West Midlands (18%), Yorkshire & Humber (17.8%), Scotland (17.6%), and the East Midlands (17.3%).

Lee Martin, Head of UK for Unlatch says: “There is a real appetite for new-build homes in Britain. They offer greater energy efficiency in the middle of an energy crisis, they’re more accessible thanks to numerous buying schemes and developer incentives, and the process of buying is a lot simpler than existing properties because they tend to avoid the dastardly chains that can cause emotional and financial grief for so many buyers.

"In fact, national developers have created their own help-to-buy scheme internally since the government's version has ended in order to keep on helping homebuyers.

"The North of England has performed particularly well since last Christmas. This is partly due to local prices being lower and therefore have more room to grow, but also because of an ongoing trend of increasing buyer demand in these parts of the country as buyers turn their backs on the high prices in the South in an attempt to make their hard-earned pound stretch further.”

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