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Price gap grows between existing and new build homes

A recent study by a building inspection firm has unearthed that the price gap between existing properties and those newly built has widened by 11 percent in the last 10 years.

Over a decade ago, an average new build home in the UK would sell for around 19 percent more than an average existing home. However, now, in 2021, an average new build property can command a premium price tag that is 30 percent greater than an average existing home.

Managing Director for building inspector HouseScan, Harry Yates, commented to Property Wire that:

“I think many homebuyers will appreciate that a brand-new home will carry a price premium, in the same way a brand-new car will set you back more than a second hand one.”

Yates added, however, that it might be argued that this considerable increase over 10 years is slightly unfair considering various issues surrounding new build developments in recent years, such as significant snagging lists and the leasehold scandal.

Figures from the recent study show that new builds in the nation’s capital sell, on average, for around 2.3 percent more. In the UK’s South East, new build buyers are paying twice the premium that they were 10 years ago, while in the North East, the difference between new and existing properties is the least significant. Additionally, new build properties across the South West, the East Midlands and the East of England have all risen dramatically in terms of prices paid by buyers a decade ago.