Where the cost of existing homes exceeds that of new construction – Show House

The latest research from Warwick Estates has revealed that in the UK market there are no less than 29 areas where buyers can move up the new construction ladder for less than the cost of existing homes.

Warwick Estates analyzed the latest land registry data which shows that the average new home currently carries a 33% premium over the price paid for existing properties.

However, a number of locations currently 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 5% + more affordable in Kensington and Chelsea, Harrow, Brighton (-9%), Brentwood (-8%), Lichfield, Runnymede, Hounslow (-7%), Islington, Haringey, Reading, the New Forest, Windsor and Maidenhead, Hertsmere and Bournemouth, Christchurch and Poole.

Warwick Estates COO Bethan Griffiths commented: “House prices have exploded across the UK and it has been no different when it comes to 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, which represents a great opportunity for homebuyers looking to purchase a new property.

Zoned New_Build_Average_Price Average_existing_ price Difference
Surrey heath £ 320,476 £ 414,408 -23%
Saint-Alban £ 468,870 £ 546,660 -14%
Richmond-upon-Thames £ 612,536 £ 710,325 -14%
Oxford £ 388,704 £ 447,504 -13%
Canterbury £ 292,586 £ 331,340 -12%
West Devon £ 250,906 £ 283,757 -12%
Kensington and Chelsea £ 1,135,215 £ 1,251,619 -9%
Harrow £ 453,181 £ 499,382 -9%
Brighton and Hove £ 358,798 £ 393,960 -9%
Brentwood £ 414,765 £ 450,173 -8%
Lichfield £ 263,301 £ 283,014 -7%
Runnymedes £ 404,050 £ 433,525 -7%
Hounslow £ 412,747 £ 442,663 -7%
Islington £ 636,260 £ 672,842 -5%
Haringey £ 537,812 £ 568,515 -5%
Reading £ 287,354 £ 302,838 -5%
New Forest £ 344,829 £ 362,627 -5%
Windsor and Maidenhead £ 480,271 £ 504,631 -5%
Hertsmere £ 472,165 £ 495,629 -5%
Bournemouth Christchurch and Poole £ 282,883 £ 296,918 -5%
Hammersmith and Fulham £ 712,593 £ 744,347 -4%
Ceredigion £ 209,587 £ 218,256 -4%
Tunbridge Well £ 392,012 £ 404,481 -3%
Spelthorne £ 371,186 £ 380,344 -2%
Enfield £ 410,573 £ 419,531 -2%
Trafford £ 316,112 £ 322,335 -2%
Lewisham £ 429,806 £ 437,425 -2%
Brent £ 495,807 £ 504,509 -2%
Sevenoaks £ 465,180 £ 467,680 -1%
UK £ 329,801 £ 247,967 33%
Data from UK House Price Index – New build vs. existing (May 2021 – latest available)

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