How Does The Price Of New Builds Compare To Old Homes?
Are New Homes Worth The Extra Cost?
It may be worth paying more for a brand new home for the following reasons:
Of course, many people prefer the character and size of older homes - so the extra cost of a new build won't be worth paying for everyone!
How Popular are New Builds?
New Home vs Old Home Average Purchase Price 2019
Region | Average Price of Old Home | Average Price of New Home | Price Difference £ | Price Difference % |
#1 North East | £161,530 | £236,535 | +£75,005 | +46.4% |
#2 Wales | £181,406 | £250,756 | +£69,350 | +38.2% |
#3 East Midlands | £212,735 | £277,310 | +£64,575 | +30.4% |
#4 Yorks and Humber | £189,232 | £243,247 | +£54,015 | +28.5% |
#5 West Midlands | £221,886 | £283,546 | +£61,660 | +27.8% |
#6 North West | £192,867 | £234,337 | +£41,470 | +21.5% |
#7 East Anglia | £275,790 | £308,606 | +£32,816 | +11.9% |
#8 South West | £287,647 | £318,937 | +£31,290 | +10.9% |
#9 Greater London | £615,867 | £678,514 | +£62,647 | +10.2% |
#10 South East | £380,307 | £399,256 | +£18,449 | +4.8% |
England and Wales | £292,457 | £348,025 | +£55,568 | +19.0% |
As you can see from the table above, new builds cost more than pre-owned properties in every region last year.
The difference was most noticeable in the North East and Wales regions, while in the South East new builds didn't cost much more than old homes.
As a general rule, areas with lower average property prices saw the greatest difference in price between old properties and new builds.
Region | Average Price of Old Home | Average Price of New Home | Price Difference £ | Price Difference % |
#1 Wales | £266,366 | £297,430 | +£31,064 | +11.7% |
#2 East Midlands | £302,239 | £335,589 | +£33,350 | +11.0% |
#3 North East | £273,222 | £286,743 | +£13,521 | +5.0% |
#4 Yorks and Humber | £306,496 | £317,155 | +10,659 | +3.5% |
#5 East Anglia | £365,388 | £376,265 | +10,877 | +3.0% |
#6 West Midlands | £351,843 | £356,480 | +£4,637 | +1.3% |
#7 South West | £417,163 | £392,087 | -£25,076 | -6.0% |
#8 North West | £337,299 | £303,836 | -£33,436 | -9.9% |
#9 South East | £592,065 | £513,070 | -£78.995 | -13.3% |
#10 Greater London | £1,074,643 | £798,512 | -£276,131 | -24.7% |
England and Wales | £416,786 | £374,250 | -£42,536 | -10.2% |
Detached properties are the only property type where the average cost of new builds was actually cheaper than old builds in some regions.
In Greater London, new detached properties were 25% cheaper than old ones. This significant difference could be because Greater London is such a populated region that the only room to build new detached properties is on the outskirts. Generally, property prices decrease as the further you get from central London.
Region | Average Price of Old Home | Average Price of New Home | Price Difference £ | Price Difference % |
#1 Wales | £167,727 | £262,794 | +£29,109 | +17.4% |
#2 East Midlands | £184,059 | £213,147 | +£29,088 | +15.8% |
#3 North East | £151,668 | £171,543 | +£19,875 | +13.1% |
#4 West Midlands | £201,753 | £227,372 | +£25,619 | +12.7% |
#5 Yorks and Humber | £174,211 | £192,072 | +£17,861 | +10.3% |
#6 East Anglia | £245,355 | £262,794 | +£17,439 | +7.1% |
#7 South West | £266,728 | £280,713 | +£13,985 | +5.2% |
#8 Greater London | £657,057 | £688,634 | +£31,577 | +4.8% |
#9 North West | £192,702 | £199,797 | +£7,095 | +3.7% |
#10 South East | £363,605 | £375,057 | +£11,452 | +3.2% |
England and Wales | £256,693 | £261,346 | +£4,653 | +1.8% |
Semi-detached properties seem to mirror the general trend across the regions. Once again, Wales, East Midlands and the North East are in the top 3 for the most expensive new builds when compared to the price of an old home.
Average Price of Old Home | Average Price of New Home | Price Difference £ | Price Difference % | |
#1 North West | £131,270 | £201,072 | +£69,802 | +53.2% |
#2 Yorks and Humber | £138,689 | £200,406 | +£61,717 | +44.5% |
#3 Wales | £132,991 | £190,025 | +£57,034 | +42.9% |
#4 West Midlands | £166,148 | £220,025 | +£53,877 | +32.4% |
#5 North East | £120,466 | £156,607 | +£36,141 | +30.0% |
#6 East Midlands | £153,172 | £198,392 | +£45,220 | +29.5% |
#7 East Anglia | £213,235 | £275,471 | +£62,236 | +29.2% |
#8 South East | £301,424 | £372,134 | +£70,710 | +23.5% |
#9 South West | £232,963 | £263,740 | +£30,777 | +13.2% |
#10 Greater London | £677,353 | £741,594 | +£64,241 | +9.5% |
England and Wales | £241,212 | £288,846 | +£47,634 | +19.8% |
When we break down the data to analyse the prices of terraced properties, we see the North West climb to the top of the table, with new build terraced houses over 50% more expensive than pre-owned properties.
In contrast, this region was one of the lowest for semi-detached and detached properties - detached new builds were actually around 10% cheaper than similar pre-owned properties! So, if you're looking for a new build in the North West, it could be worth looking at detached or semi-detached properties if you want to get the most bang for your buck.
Average Price of Old Home | Average Price of New Home | Price Difference £ | Price Difference % | |
#1 North East | £112,212 | £183,390 | +£71,178 | +63.4 |
#2 Wales | £133,560 | £210,274 | +£76,714 | +57.4% |
#3 West Midlands | £137,754 | £206,594 | +£68,840 | +50.0% |
#4 South West | £186,250 | £255,812 | +£69,562 | +37.4% |
#5 Greater London | £495,579 | £672,884 | +£177,305 | +35.8% |
#6 East Anglia | £164,951 | £219,654 | +£54,703 | +33.2% |
#7 South East | £219,298 | £286,289 | +£66,991 | +30.6% |
#8 East Midlands | £125,746 | £159,100 | +£33,354 | +26.5% |
#9 North West | £140,254 | £170,996 | +£30,742 | +21.9% |
#10 Yorks and Humber | £139,062 | £151,247 | +£12,185 | +8.8% |
England and Wales | £268,536 | £412,664 | +£144,128 | +53.7% |
While the North East and Wales are once again at the top of the table, it's also worth noting that Greater London and the South West have climbed higher in this category. In cities like London and Bristol, apartment living is particularly popular - which could be why new build flats are sold at a premium.
Percentage Of Property Sales That Were New Build 2019
Region | Number of Old Houses Sold | Number of New Houses Sold | % of Sales that were New Builds |
#1 Greater London | 56,631 | 8,992 | 13.7% |
#2 North East | 32,344 | 4,854 | 13.1% |
#3 East Midlands | 52,489 | 7,571 | 12.6% |
#4 East Anglia | 28,245 | 3,983 | 12.4% |
#5 South East | 132,388 | 18,049 | 12.0% |
=6 North West | 71,052 | 9,013 | 11.3% |
=6 West Midlands | 57,102 | 7,242 | 11.3% |
#8 South West | 62,602 | 7,573 | 10.8% |
#9 Yorks and Humber | 59,076 | 6,894 | 10.5% |
#10 Wales | 34,146 | 2,398 | 6.6% |
England and Wales | 590,293 | 76,749 | 11.5% |
New builds made up the highest proportion of the housing market in Greater London and the North East - two very different areas.
In contrast, Wales was the only region where new builds made up less than 10% of all properties sold last year.
All data from HM Land Registry.