Revealed - new-build homes increase by 22.1%...

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04 August 2022

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Revealed - new-build homes increase by 22.1%

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.