New-build properties remain overwhelmingly popular despite a small drop in the number of starts in the past year.
New home starts slip
Work was started on 137,800 new-build homes in England during the 2022/23 financial year to the value of £55bn1, which represents a 1.4% year-on-year decline.
Generally, a new-build house or flat is counted as a ‘start’ from the moment on-site construction begins. For example, when the foundations are laid for a block of 100 flats, that is counted as 100 ‘starts.’
New-build premium skyrockets
The average new-build house price, meanwhile, rose by 13.8% on an annual basis.
A separate study by the same business has shown that, with the average new build now valued at £425,186, the premium commanded by new homes currently sits at 52%. This astronomical difference follows a 20% increase in the premium over the course of the last year alone.
London leads the way
Regionally, the annual change in the number of new build starts ranges from a 13.4% increase in London to a 14% drop in Yorkshire & Humber. In terms of price growth, the South West (16%) and East Midlands (15.9%) were out in front, with London (9.3%) recording the lowest growth.
1Sourced Franchise, 2023
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