With the government pledging more new towns, the Halifax has produced data showing that housing in such locations tends to be cheaper and more affordable for first time buyers.
The lender claims that over the past three decades, the average price of a new town property has risen by 441%, a little below the all-UK property type norm 454%. But the gap has narrowed over the past 10 years, where new towns have kept pace with national house price growth, recording a 68% increase compared with 69% for UK as a whole.
Antrim recorded the strongest growth in house prices of any new town over the past decade, rising 118% from £102,439 to £223,110. Derry/Londonderry follows, with house prices nearly doubling since 2014 (+99%, increasing from £101,689 to £202,285). Cwmbran in Wales is next with 88% (£134,540 to £253,392).
Amanda Bryden, head of Halifax Mortgages, says: “New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK.
“With the Government’s ambitious plan to build a new generation of new towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.
“It’s vital that a new towns’ policy prioritises affordability and sustainability. Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future.”
Allied to the government’s new towns initiative, the government says some £68m will be directed to local authorities to turn neglected land into new homes.
Recipients and sums will include £2.9m to Manchester to unlock a vacant brownfield site to accommodate 220 affordable homes; £2.2m to Eastbourne to transform a former industrial site, to build 100 new homes; some £1.7m to Weston-Super-Mare to allow over 100 homes to be built on brownfield land; and £1.4m to Northampton to transform a former bus depot and deliver 72 new homes.