New Towns offer affordable housing with strong growth potential

The government has announced ambitious plans to build 1.5 million homes in England over the next five years, with a modern generation of New Towns being an important part of its house-building agenda.

Halifax has analysed New Town house price trends over the last three decades to understand how these locations have performed compared to the wider market.

A short history of New Towns

New Towns themselves are not a new concept. The idea of planned towns dates back to the early 20th century with the garden city movement.

The major push for New Towns came after World War II, driven by the need to rebuild and provide housing for those displaced by bombings and demolition programmes.

Over two million people now live in towns built as a result of the 1946 New Towns Act.

New Town house prices over the last decade

Over the last 10 years, New Towns have kept pace with national house price growth, recording a 68% increase compared to 69% for UK as a whole. However, in several New Towns, property prices have risen much more sharply over this period, with the top end of the list dominated by locations in Northern Ireland.

Antrim recorded the strongest growth in house prices of any New Town over the last decade, rising 118% from £102,439 to £223,110.
Derry/Londonderry follows, with house prices nearly doubling since 2014 (+99%, from £101,689 to £202,285).
Cwmbran in Wales comes next with property prices increasing by 88% (£134,540 to £253,392).

Table 1: Top 10 New Towns for property price growth over the last decade

New Town
Region
Average house price 2014 (£)
Average house price 2024 (£)
10-year growth
Antrim
Northern Ireland
102,439
223,110
118%
Derry/Londonderry
Northern Ireland
101,689
202,285
99%
Cwmbran
Wales
134,540
253,392
88%
Corby
East Midlands
147,239
275,709
87%
Livingston
Scotland
152,552
284,636
87%
Craigavon
Northern Ireland
104,634
194,560
86%
Basildon
South East
182,137
327,314
80%
Newton Aycliffe
North East
107,881
192,090
78%
East Kilbride
Scotland
132,339
234,684
77%
Welwyn Garden City
South East
253,661
449,688
77%
New Town average
178,951
300,656
68%
UK average
205,693
346,995
69%

Source: Halifax, 12 months to August

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Amanda Bryden, Head of Halifax Mortgages, said:

“New Towns have played an important role over the years in helping to provide additional, affordable housing options across the UK. With the government’s ambitious plan to build a new generation of New Towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.

“It’s vital that a New Towns policy prioritises affordability and sustainability. Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future.”

30 years of New Town house prices

Over the past three decades, the average price of a New Town property has risen by 441%, slightly lagging the average for the whole of the UK, where prices are up by 454%. However, some New Towns have seen property prices increase by much more.

Crawley in the South East tops the list, with property prices rising by 543% since 1994, from £63,712 to £409,836.
Craigavon in Northern Ireland is second and saw prices increase by 524% (£31,189 to £194,560).
Hemel Hempstead in the South East experienced a 520% increase (£70,502 to £436,986).

Table 2: Top 10 New Towns for property price growth over the last three decades

New Town
Region
Average house price 1994 (£)
Average house price 2024 (£)
30-year growth
Crawley
South East
63,712
409,836
543%
Craigavon
Northern Ireland
31,189
194,560
524%
Hemel Hempstead
South East
70,502
436,986
520%
Northampton
East Midlands
55,518
337,421
508%
Milton Keynes
South East
69,464
419,005
503%
Corby
East Midlands
46,465
275,709
493%
Basildon
South East
56,024
327,314
484%
Stevenage
South East
63,639
364,132
472%
Antrim
Northern Ireland
39,482
223,110
465%
Peterborough
East of England
51,838
292,103
463%
New Town average
55,606
300,656
441%
UK average
62,610
346,995
454%

Source: Halifax, 12 months to August

More house for your money in a New Town

Today, in all but six New Towns, properties are typically being sold at a discount compared to the average price of the surrounding region.

Peterlee has the biggest gap, with its 2024 average house price of £127,853 being 41% below that of the North East as a whole (£218,228).
Peterborough comes next with properties costing 27% less than the East of England average (£292,103 vs £402,248).
Skelmersdale is also 27% below the average for the North West (£193,095 vs £264,362).