October 25, 2024
Are New Build Homes More Expensive?
As a rule of thumb, yes, newly built homes are generally more expensive than existing homes in the UK. With our population increasing (0.33% more than 2023 to be exact), extra homes are being built to keep up with the demand.
However, opting to purchase a new build over an existing property will likely come with a higher cost – but why? To learn more about the costs surrounding new build properties, and what makes them more expensive to buy, continue reading.
Why Are New Builds So Expensive in the UK?
So, why are new builds in the UK more expensive than existing properties? There are several key reasons why newly built properties in the UK are significantly more expensive than older-standing homes, such as:
- Being subject to the new build premium
- Being built with more modern and costly features
- Increased material and labour costs
- Being able to move in without having to do much renovation
- The average price for a newly built property was £451,000
- The average price for an existing resold property was £298,000
The data also shows that, on average, house prices have increased by 0.6% since June – just two months after the average house price was estimated.
This important and helpful data shows that new build homes are in fact, much more expensive than existing properties, and there’s always the possibility for house prices to rise in the near future.
Are New Build Homes in High Demand?
It’s estimated that around 300,000 new homes are needed in the UK each year. Although this proves the demand for new builds, how many people actually want to purchase a new build over an existing property?
Buying a newly built home has been a popular choice for aspiring homeowners across the country, but recent statistics show that fewer people have displayed interest in buying a new build, opting for an older build instead.
Back in 2023, there was an 11.18% decrease in interest in new builds. However, new builds do offer many advantages, and people continue to purchase new builds each year. For many, the modern appearance, customisation, convenience, and energy efficiency make them the preferred choice when it comes to buying a home.
Comparing New Build Homes and Existing Homes
It’s difficult to know which property type to go for – new or old build. Apart from the clear cost difference, there are a few other factors that set new and old build homes apart. If you’re thinking of buying your first home or moving properties, it’s good to know the benefits that new and older homes offer.
| New Build Homes | Existing Homes |
|---|---|
| Ready to move in (unless construction plans are delayed) | Less expensive to buy |
| More energy efficient | Opportunities to renovate |
| Modern amenities | More character and unique home features |
| Fewer changes or repairs are needed | Located in established neighbourhoods |
| Allows for customisation | Room for negotiation |
Do New Builds Lose Value?
Yes, new builds can potentially lose value over time. Newly built homes often lose initial depreciation not long after the purchase is made. Their new build premium quickly goes, as the property is no longer considered brand new. However, various factors help some new builds maintain their value, while others mean a new build’s value could decrease.
Maintain Value
- Having modern features within the home
- Lower maintenance costs
- Great energy efficiency ratings
- Warranties to provide peace of mind
Decrease Value
- Competition against other newly built homes that haven’t been lived in before
- Poor location (some new builds are built near undesirable living areas)
- General local market conditions
- Poor construction work from developers
The bottom line is that, if you purchase a new-build property, it’s likely that the value will decrease slightly. As mentioned, this is due to the simple fact that your home is no longer brand new. However, there’s been some new builds that have been able to increase their value.
Find Your Dream New or Old Build Home With Liam Gretton Today
Are you thinking of buying your first home or moving properties? At Liam Gretton, we have a range of properties available across the Wirral. We understand how important it is to find your forever home in an area you love.
Our expert services are second to none, and our dedicated team of professionals are ready and waiting to assist you in finding the perfect home for yourself or your family. With both new and existing homes available, we encourage you to find your next property with us.
We offer a bespoke service that’s favoured by past and present clients, and our invaluable team do everything they can to help you secure your next property. Whether you’re selling your current home, or want to move properties, we will happily assist you.
To find out more about our services and how our team can help, please contact us today. We look forward to hearing from you soon!
Liam is the founder of Liam Gretton – Wirral Estate Agent and has a vast experience in both buying and selling luxury homes on the Wirral. His expertise has led him to become one of the Wirral’s leading estate agents.
