Property

New-build costs continue to climb

The price of British new-build homes have increased by 22.1% in the past year, rising from £324,787 in 2021 to £396,570 in 2022 despite a significant drop in sales volume.

Property Reporter
2nd August 2022
Detached New Build 163

Research by Warwick Estates highlights the complexity for the current new-build sector in Great Britain, with the industry having been given a central role in solving the ongoing housing crisis while having to deal with the pandemic’s effects on materials and labour.

Despite this complex picture, the most recent analysis of the new-build market from Warwick Estates reveals that Britain’s average new-build house price has increased by 22.1%,

The biggest regional price increases have been reported in Wales (28.1%), the South West (24.9%), Scotland (24.6%), and the East of England (24%).

However, in the same timeframe, the total value of Britain’s new-build sales has decreased by -75%, now sitting at just £1.4 billion compared to 2021’s figure of £5.6 billion.

This is due to a national drop of -80% in the number of new-build transactions over the past year, falling from 17,223 in 2021 to 3,497 in 2022.

The biggest regional decreases in transaction volume have been reported in Wales where, despite an increase in the average new-build price, the total value of new-build sales has fallen by 97% from £80.4 million to £2.5 million.

The total sales value of new-builds in the North East is also down -97%, while the West Midlands (-95%), North West (-95%), and East of England (-94%) have also reported significant drops.

With the negative effects of the pandemic hopefully fading into the past - as is suggested by increasing average prices - it’s reasonable to expect transaction numbers and, therefore, overall transaction value, to increase throughout the rest of 2022 as more stock finds its way onto the market.

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