New Build premiums hit decade-high levels across most...

A study by property software firm APRAO shows new-build house price premiums at their highest in a decade.

The supplier analysed existing and new-build properties and prices over the last decade, and found that across Britain, the average new-build commanded a premium of 29.9% in 2023.

This is 6.9% higher than the average premium of 23% back in 2013.

New-build house price premiums had previously peaked in 2018, when they averaged 28.5% across Britain. Such premiums had been in decline since, falling each year to a low of 20.5% in 2022.

The new analysis shows that new-build premiums have hit a decade high in all but one region, with London the only pocket of the property market to buck the trend.

At 0.2%, the capital is also home to the weakest new-build house price premium.

The North East tops the table with the strongest new-build premium, averaging 56% in 2023, whilst Scotland (45.2%) and the East Midlands (40.3%) also boasted premiums of more than 40%.

An APRAO spokesperson says: “While new homes have always commanded a higher price compared to existing stock, this premium has been reducing in recent years, with the impact of the pandemic and, more recently, higher mortgage rates restricting market activity and buyer purchasing power.”

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