The findings reveal that, historically, new-build and existing homes have equally contributed towards positive market performance.
Over the past decade, new-build house prices surged by 73%, closely followed by a 63.7% increase in existing home prices. Over the last five years, existing home prices rose by 24.1%, nearly matching the 25.5% increase in new-build property prices.
However, new-build homes emerged as the primary driver behind the housing market’s recovery in the past year. Existing property prices only saw a marginal 0.2% year-on-year increase, whereas new-build homes witnessed a significant 8.1% rise. With supply down in 2023, it is no surprise that buyers have been looking to the new-build sector for property investment opportunities.
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Across all regions of Britain, new-build properties outperformed the existing market. The West Midlands, East Midlands, and North East exhibited the most robust growth in existing house prices at 1.2%, 1.1%, and 1% respectively. In contrast, new-build values soared by 9.2%, 8.9%, and 10.3% in these regions.
In certain areas, robust growth in the new-build sector counteracted an otherwise declining housing market. Despite year-on-year decreases in existing market values in the South East, East of England, and Scotland (ranging from -0.2% to -0.6%), new-build prices rose by 7.1% to 8.2%.
London faced the most significant challenges, attributed to high borrowing costs and property prices. Existing property values in the capital dropped by -1.3% year on year, whereas new-build values experienced a modest increase of up to 3.3%.
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