Stone Real Estate has been crunching the numbers this week and released the findings of new research that looks at where is home to the smallest gap between the price paid by first-time buyers and the average price of a new build property.
The new homes specialists analysed the current average cost of buying new across Britain and then compared this to the average house price paid by first-time buyers, to see which pockets of the market provided the most realistic opportunity for those climbing the first run to do so in a brand new home.
According to the data, across Britain the average cost of buying a new build is some £101,085 more than the price paid by the average first-time buyer, however, there are a total of three areas where the cost of a new build comes in lower than the average FTB house price.
Despite the high house prices across the general market, Oxford is home to an average new build price of £344,799, £15,761 cheaper than the price paid by the average first-time buyer (£360,559).
Believe it or not, while the average new build in the capital is £73,043 more expensive than the price paid by London’s first-time buyers, Islington is the second-best area to buy new as an FTB. The average Islington new build currently costs £586,328, while the average FTB pays out £599,414, a £13,086 difference.
While more marginal, the cost of a new build in Ceredigion is -£1,238 more affordable than the price paid by the average first-time buyer.
Although new build prices are higher than that paid by the average first-time buyer elsewhere in Britain, Surrey Heath, Brighton, West Dorset, Hyndburn, Reading, Canterbury and Kensington and Chelsea are home to some of the smallest gaps in price.
Inside the capital, Hounslow, Haringey, Richmond, Tower Hamlets and Harrow are also home to some of the smallest gaps between the cost of buying your first home, and the cost of buying brand new.
Michael Stone, Founder and CEO of Stone Real Estate, commented: “New builds often carry a price premium and for a good reason. There are many benefits to buying new whether it be the inclusion of social outlets and amenities to new build developments, financial incentives such as stamp duty paid for, the money-saving aspect of a brand new property in terms of appliances and energy efficiency and the lack of maintenance required when moving in.
"As a result, they can be way out of the financial reach of first-time buyers and in some pockets of the market, the gulf in price between buying new and buying for the first time is huge. However, this isn’t the case across the board and while some areas aren’t necessarily ‘affordable’ there is an almost level playing field between the price being paid by first-time buyers and the price of a new build property.
"This is, of course, due to first-time buyers paying much more for their first home in current market conditions, however, we’ve also seen a change in the new build sector whereby housebuilders are putting more of an emphasis on the delivery of affordable homes, with schemes like Help to Buy also helping many onto the property ladder via the new build sector.”