New-builds cheaper than existing homes in 69 areas

New-build homes are cheaper than the average existing property in 69 local authority areas across Great Britain, despite newly built properties costing £77,279 more on average nationally, according to research from UK Property Development (UKPD).

The findings challenge the assumption that buyers always pay more for a new-build home, with the average price of a new-build property below that of existing stock in areas including Trafford, Sevenoaks and Redbridge.

The research* comes as first-time buyers remain in focus following the Autumn Budget and Labour’s confirmation of its Your First Home initiative, highlighting the importance of understanding how property prices vary between local markets.

National picture: new-builds cost 28.7% more
Across Great Britain, the average new-build property costs £346,611, compared with £269,332 for existing properties. This represents a premium of £77,279, or 28.7%.

However, the national average masks significant differences at local authority level, with some markets recording lower average prices for new-builds and others seeing premiums well above the national figure.

Local authority areas with new-build discounts
Across 69 local authority areas, the average price of a new-build property is below that of existing properties. Trafford in the North West records the largest difference, with new-build homes averaging £225,065, compared with £398,594 for existing stock. This is a gap of £173,529, or 43.5%.

Sevenoaks in the South East has the next-largest discount, with new-builds costing 43.2% less than existing stock.

Redbridge in London follows, with new-build coming at a discount of 39.4%,

Other areas with particularly large differences include:

Three Rivers, East of England: new-build prices are 36.1% below the existing-property average.
Southend-on-Sea, East of England: 35.7% lower.
Bromley, London: 34.8% lower.
Hounslow, London: 34.6% lower.
Stevenage, East of England: 32.4% lower.
Barnet, London: 30.1% lower.

These figures compare average prices across each area, rather than the prices of directly comparable properties, so they should not be taken as proof that an equivalent new-build will always cost less than an existing home.

Local authority areas with the biggest new-build premiums
At the other end of the scale, some local authority areas record new-build premiums far above the national average.

Hastings in the South East has the largest premium in the data, with new-build homes averaging £581,709, compared with £236,013 for existing properties: a difference of £345,696, or 146.5%.

This is followed by Hartlepool in the North East (133.1%), Chesterfield (130.8%), Redcar and Cleveland (125.5%), East Ayrshire (113.6%), Broxbourne (110.5%), and North Ayrshire (105.1%).

Andy Morrison, Director of UK Property Development, commented:

“Our research shows that the price difference between new-build and existing properties varies considerably depending on where buyers are looking. While new-build homes cost more on average nationally, there are 69 local authority areas where the average price is lower than that of existing stock.

With first-time buyers in focus following the Autumn Budget and Labour’s confirmation of its Your First Home initiative, understanding local price differences is particularly important. These figures offer a useful starting point for exploring local markets, although average prices can be influenced by the types of properties being sold. Buyers should compare like-for-like homes before drawing conclusions about value.”