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Graham Awards


New builds far more expensive for landlords than existing homes

Existing homes have risen some eight per cent in value in the past year while the price of a typical new build is now 28 per cent more than 12 months ago.

The current average price of an existing home in Britain is £272,851; by contrast the average price of a new-build has risen from £330,662 to £422,414 - up by well over a quarter.

The gap is even greater in some regions. 


Landlords buying an average new-build home in Wales will now pay 34 per cent more than a year ago, while existing homes have seen capital appreciation of 11 per cent.

In Scotland, new-build inflation has been 29 per cent - existing homes are only seven per cent more expensive to buy now than 12 months ago.

However a spokesman for Unlatch - the organisation behind the research and an advocate of new homes - says: “Investors on the whole do prefer to go for a new build property for many reasons, one more being that by the time said investor completes on their purchase, the agent usually already has a tenant lined up to move in; meaning no void periods. 

“In a fast, frantic, and highly competitive housing market, new-builds also offer more reliability in terms of the actual purchase itself. Fewer sales are subject to falling through as a result of unwanted discoveries during the surveying process, as well as the fact there is no dreaded chain to contend with.”

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Poll: Which is likely to be the better investment for landlords?


  • icon

    New builds like new cars are a mugs game, try selling a new build a year after buying it and you will loose thousands.


    They are presented well initially, but once that interior decoration boost has gone, the small room sizes in many new builds become even more apparent.

  • icon

    I quite like modern houses but tend to buy them as the second owner. Several of mine have been the same price as they were brand new several years earlier and 2 were much cheaper (£15K and £30K). The other big advantage of buying slightly second hand is that the development is finished by that stage. The school has been built, the bus service exists, etc.

  • George Dawes

    They’re also built to far lower standards of construction

  • icon

    And let us not forget, they are also subject to “ Estate Rent “, that open ended, uncapped charge which the rest of us in “ True “ Freehold houses don’t have to pay. I think I will pass.


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