According to the latest land register data, the average new home currently carries a 33% premium over the price paid for existing properties. However, in the UK market, there are no less than 29 areas where home buyers can move up the new construction ladder for less than the cost of existing homes.
Warwick Estates research highlights a number of locations that offer a more affordable new build price compared to the rest of the market.
The best deals on new builds can be found in Surrey Heath, where the average new build value of £ 320,476 is -23% more affordable than the rest of the market.
St Albans also offers a foot on the more affordable ladder via the new construction sector, with an average new home costing -14% less than the wider average of £ 546,660.
The London Borough of Richmond ranks first for the best new construction deals in the capital. The average new home in the borough currently costs £ 612,536, -14% less than the average of £ 710,325 in the rest of the market.
Three other pockets of the housing market are currently home to double-digit discounts on new construction, including Oxford (-14%), Canterbury (-12%) and West Devon (-12%).
New homes are also more than 5% more affordable in Kensington and Chelsea, Harrow, Brighton (-9%), Brentwood (-8%), Lichfield, Runnymede, Hounslow (-7%), Islington, Haringey, Reading, la New Forest, Windsor and Maidenhead, Hertsmere and Bournemouth, Christchurch and Poole.
Bethan Griffiths, COO of Warwick Estates, commented: “House prices have exploded across the UK and it has been no different for the new construction market. In fact, new construction premiums remain around 33% higher than existing property values and despite delays caused by the introduction of EWS1 requirements, demand remains high.
“Despite this, there are a notable number of areas that offer a more affordable walk via the new construction route and this represents a great opportunity for homebuyers looking to purchase a new property.”