The Average New-Build Have Increased In Value
The average homeowner is thought to spend 21 years in a home on average, so Warwick Estates analysed new-build and existing house prices between 2000 and 2021 and found that across England and Wales, the average new-build has increased in value considerably.
In 2000, the average new-build cost £92,234, but today, this has increased to £343,185 - a 272% increase. While the existing market has also seen impressive growth, the average house price has increased by just 254% in comparison.
The premium attached to new-build homes has also jumped by some margin. In 2000, the average new-build home cost £17,805 more than the average existing property. Today, this premium has climbed to £79,426.
London has seen the biggest jump in new-build values, up from an average of £133,568 in 2000, to £525,927 - a 294% increase and 19% more than the existing market where prices are up 275%.
The East Midlands (290%) and the East of England (290%) have also seen some of the largest increases and have also outperformed the existing market to the largest extent, with a 27% and 26% respective difference in price growth during this time.
However, all areas of England and Wales have seen new-build house price growth not only exceed 200% since the start of the new Millennium but also outpace the existing market.
The East of England has also seen the largest increase in new-build premiums. In 2000, new-builds were valued £19,345 higher than existing homes, but today this has climbed to £97,435 - a £78,090 increase.
The East Midlands (£73,222), the West Midlands (£66,255) and the South West (£60,998) have also seen the premium attached to new-build homes climb by more than £60,000 in the last two decades.
A Climb In Premium
COO of Warwick Estates, Bethan Griffiths, commented:
“New-build homes have always commanded a premium and this premium has climbed considerably in the last two decades as house prices have risen, but also the quality and offering of the new-build sector has evolved.
While getting a foot on the new-build ladder may present a tougher task for aspirational homeowners initially, they are far more likely to see their investment not only hold its value but increase at a greater rate than the existing market. So it can be well worth the additional initial financial investment for those with a long-term view of homeownership.”
Table shows the increase in the average value of new-build and existing homes between 2000 and 2021
|Location||Average NB house price (Mar 2021)||Change - 2000 to 2021 (£)||Change - 2000 to 2021 (%)||Average Existing house price (Mar 2021)||Change - 2000 to 2021 (£)||Change - 2000 to 2021 (%)|
|Yorkshire and The Humber||£243,791||£180,320||284%||£181,826||£131,985||265%|
|East of England||£404,852||£300,939||290%||£307,417||£222,849||264%|
|West Midlands Region||£305,790||£217,404||246%||£214,363||£151,150||239%|
|England and Wales||£343,185||£250,951||272%||£263,760||£189,330||254%|
Table shows the new-build price premium in 2000 and 2021 and the change between the two
|Location||Average NB house price (Mar 2000)||Average Existing house price (Mar 2000)||NB price premium (2000)||Average NB house price (Mar 2021)||Average Existing house price (Mar 2021)||NB price premium (2021)||Change in NB premium (£)|
|East of England||£103,913||£84,568||£19,345||£404,852||£307,417||£97,435||£78,090|
|West Midlands Region||£88,386||£63,213||£25,173||£305,790||£214,363||£91,427||£66,255|
|Yorkshire and The Humber||£63,471||£49,841||£13,630||£243,791||£181,826||£61,966||£48,335|
|England and Wales||£92,234||£74,430||£17,805||£343,185||£263,760||£79,426||£61,621|
- Warwick Estates was founded in 2007, and acquired by Aldridge in 2017 with the ambition to grow and strengthen the business.
- The goal of growth is one that unites the Aldridge family today across the diverse range of commercial and philanthropic activities in which it operates.
- Over 40,000 properties are managed for freeholders, asset funds, housebuilders and housing associations - a combined value of over £9bn.
- Annual revenues exceed £10million
- Warwick Estates is run by a newly strengthened management team of industry heavy-weights with decades of combined industry experience - chaired by Adrian Ringrose, former CEO of Interserve
- Current head-count is 186 staff at seven office locations throughout England