The average price for newbuild properties has dropped significantly in many regions of the UK, with London properties falling by over £122,000 within the last year. But with the average price for a newbuild standing at around £427,000, affordability remains a challenge for many potential buyers.
The latest Quarterly Newbuilds Price Index released by Propertymark shows price drops in seven regions, many falling by tens of thousands of pounds. London experienced the steepest drop, falling £122,770 in the last 12 months – but still remains the most expensive region to buy a newbuild property with an average price of £845,866.
Newbuild prices in East Midlands fell by £42,078 to take the average price to £360,193, followed by the North East, which fell £37,123 to an average £317,989.
The steepest increase was found in the North West, where newbuild property prices have increased by £26,116 in the last year, taking the average price to £364,838. In the East of England, a £20,763 jump has taken the average price of a newbuild to £523,714.
The marked regional fluctuations mean many potential buyers are priced out of owning a new home in their chosen area – but those able to relocate could beat affordability issues.
‘Any house price decreases often represent a positive opportunity for aspiring homeowners to progress with their ambitions regarding ownership’, said Propertymark CEO Nathan Emerson.
“We have witnessed a noteworthy mix of price fluctuations regarding new build properties in various areas across the UK. However, with many mortgage providers typically willing to lend around five times an annual income, there are still substantial challenges to overcome regarding potential affordability for many when looking at average prices regionally regarding new properties.
“Both the UK Government and the devolved administrations have clear cut challenges ahead of them to help ensure house prices are realistic. It remains vital than an enhanced flow of new homes reach the market in the areas where they are needed and the prospect of purchasing a home remains a practical ambition for those who aspire to own a home.”
