Difference between price for new build and rest of market in Harlow is largest in country
Business / Tue 22nd Jun 2021 at 08:12am
THE average premium paid to purchase a new build property compared to the price of an existing home in Britain is 29%, new research shows.
Overall, the average price of a new build property in the UK is £323,667.
The greatest difference in price between a new build and the rest of the market is in Harlow, where the discrepancy has reached 106%, equating to a price difference of £290,424.
Blaenau Gwent in Wales followed, with the gap being 99%, with a price difference of £100,088.
Gravesham is also home to a large new build price premium, coming in 99% higher than the wider market, with Gravesham (93%) and Preston (90%) also home to a 90%-plus price premium.
Emma Power, COO of Warwick Estates, which analysed the data, said: “Despite the uncertainty posed by the pandemic the UK housing market has boomed and this is no different where the new build market is concerned.
“New build homes have continued to command a price premium in every region of Britain and this is not only good news for those developers delivering them to market, but also to new build homebuyers who continue to see their investment hold its value.
“In the best performing areas, new build property prices are as much as double that of the existing market which is proof of the value being added by the sector to the wider DNA of the national property market.”
It seems that the new build premium for Harlow is highly exaggerated. According to Zoopla for Jun2021 Harlow average house prices were £ 341,458 and www.home.co reported the following averages: detached £ 550,450; semi-detached £ 387,778 and terraced £ 305,964. Of the other towns mentioned, land prices are much higher in Harlow (approx. £475 m2) whereas in Preston it is about £ 121 m2. Harlow is still comparatively good value when compared to neighbouring East Herts and Epping Forest. Harlow offers excellent connectivity both road and rail (Stansted Express to London, M11, M25, Stansted Airport, etc. It is a natural hub that will attract much needed businesses with well paid jobs, that will naturally push demand for quality housing, schools and services. It is not really worth comparing prices with the towns shown in this report. Far more relevant would be towns in the region that share similar strategic advantages, e.g. Bishop's Stortford, Hertford, Epping, Brentwood, etc. On this basis, Harlow represents comparative value, which will lead to demand. Given the limited scope for further new builds in Harlow district, price rises are inevitable.