Since 2010, the differential in price for newly built homes compared to second-hand properties has steadily widened. In 2018, new properties sold, on average, for 26% more than second-hand properties, compared to a differential of just 17% in 2010.
The average price of a new build property sold across England and Wales in 2018 was just below £300,000, £60,500 more than the average price of a second-hand property.
Historically, the premium paid for new build properties has increased in a strong market, but narrowed in a slower market, as developers reduce prices in order to achieve sales. However, this is not the case in current market conditions.
The rising quality of new schemes, the current lack of supply of available properties, developer incentives and Government support for the new build sector through Help to Buy, are all factors which have undoubtedly helped keep new build premiums solid over recent years.