According to a new analysis by Warwick Estates new build house prices have substantially risen over the past 12 months.
The construction materials shortage, along with the pandemic and the cost-of-living crisis have made the delivery of much-needed new build homes more challenging.
Despite these obstacles, the average new-build house price has increased by 22.1% and risen from £324,787 in 2021 to £396,570 in 2022.
Regional increases and decreases across England
The highest regional price increases have been reported in Wales (28.1%), the South West (24.9%), Scotland (24.6%), and the East of England (24%).
The table below shows the sales volume, average price, and total sales value of new-build homes in Britain in Q1 2021 and Q1 2022 alongisde annual % changes.
| Location | NB sales vol – Q1 2021 | NB ave price – Q1 2021 | Est NB total value – Q1 2021 | NB sales vol – Q1 2022 | NB ave price – Q1 2022 | Est NB total value – Q1 2022 | Change – NB sales vol Q1 2021 vs Q1 2022 | Change – NB ave price Q1 2021 vs Q1 2022 | Total value change |
| Scotland | 2,731 | £232,801 | £635,780,209 | 2,532 | £290,047 | £734,398,301 | -7.3% | 24.6% | 16% |
| London | 2,279 | £511,719 | £1,166,207,384 | 244 | £580,834 | £141,723,396 | -89.3% | 13.5% | -88% |
| South East | 2,490 | £402,734 | £1,002,807,864 | 212 | £497,327 | £105,433,352 | -91.5% | 23.5% | -89% |
| South West | 1,400 | £332,883 | £466,035,825 | 105 | £415,914 | £43,670,921 | -92.5% | 24.9% | -91% |
| Yorkshire and the Humber | 1,100 | £233,450 | £256,794,953 | 77 | £283,296 | £21,813,757 | -93.0% | 21.4% | -92% |
| East Midlands | 1,438 | £291,379 | £419,002,748 | 77 | £360,578 | £27,764,499 | -94.6% | 23.7% | -93% |
| East of England | 1,809 | £388,006 | £701,903,415 | 88 | £481,056 | £42,332,909 | -95.1% | 24.0% | -94% |
| North West | 1,717 | £251,105 | £431,147,031 | 72 | £306,680 | £22,080,935 | -95.8% | 22.1% | -95% |
| West Midlands region | 1,347 | £294,581 | £396,800,428 | 56 | £360,608 | £20,194,025 | -95.8% | 22.4% | -95% |
| North East | 580 | £207,913 | £120,589,332 | 16 | £252,868 | £4,045,895 | -97.2% | 21.6% | -97% |
| Wales | 332 | £242,059 | £80,363,628 | 8 | £310,145 | £2,481,161 | -97.6% | 28.1% | -97% |
| England | 14,160 | £334,360 | £4,734,544,292 | 947 | £407,428 | £385,834,354 | -93.3% | 21.9% | -92% |
| Great Britain | 17,223 | £324,787 | £5,593,803,673 | 3,497 | £396,570 | £1,386,806,439 | -79.7% | 22.1% | -75% |
During this time the total value of Britain’s new-build sales have decreased by -75%. This means the total value in 2021 was £5.6 billion but it currently sits at £5.6 billion.
Over the past year, there was a -80% national drop in the number of new-build transactions. In 2022 these fell to 3,497 from 17,223 in 2021.
Wales experienced the biggest regional decreases in transaction volume with the total value of new-build sales falling by 97% from £80.4 million to £2.5 million.
Sales value of new-build properties in the North East has depreciated by -97%. Other areas that have dropped significantly include the West Midlands (-95%), North West (-95%), and East of England (-94%).
As the construction materials shortage continues to ease, the negative effects of the pandemic become a thing of the past and more housing stock is provided, the property market is likely to remain steady. GetAgent predicts that transaction values are likely to increase throughout the rest of 2022.
