Price gap between new-builds and existing property grows 6.2% over decade

New-build properties cost 30% more than an existing property across Great Britain, with the price gap growing by 6.2% over the last decade according to the latest research from UK Property Development.

The figure is up from 23.7% in 2016. In England, meanwhile, the figure has risen 5.4% over the last decade, from 23.5% to 28.9%.

Such premiums are at their highest in the North East, where newly-built homes cost 60% more than existing properties on average. That’s followed by Scotland (55.4%) and Wales (44.7%). Premiums are also high in the East Midlands (41.8%) and Yorkshire and the Humber (40.6%).

By contrast, London is the only region where new-build homes are, on average, less expensive than existing properties, currently costing 10.5% less than an existing property, compared to 8.5% less in 2016.

Largest increases in the last decade

Scotland has seen the largest increase in the new-build premium over the last decade at 8.3%. The East of England’s new-build price gap has grown by 7.9%, while the North East (7.8%) and South West (7.6%) have also seen an increase of more than 7% and the South East has seen a 6.8% increase.

Andy Morrison, director of UK Property Development, said: “New-build homes continue to attract a premium in most parts of Great Britain, reflecting factors such as modern specifications, energy efficiency, and buyer demand for homes requiring less immediate maintenance.

“What’s particularly notable is that the premium has widened over the past decade across almost every region, suggesting that the relative value buyers place on new-build properties has strengthened over time.

“This is likely largely due to the increasing public concern around energy efficiency, both on household bills and in our individual contributions to tackling climate change. New-build homes cost more to buy, but that is because of the great benefits and long-term cost savings they provide.”