New Build houses see prices rise by 12 per cent in five years though North South divide persists
- 29 April 2013
The average price of newly built houses and flats in the UK has shot up by 12% in five years with the average price now £233,822 according to research from Halifax.
The result equates to a 9% rise above the UK average house price for all properties, says the analysis. Halifax found that nationally, there has been an increase of 40% from £166,473 over the past decade while regionally, the biggest riser over the same period has been in Greater London where the average price for a new home has risen by a massive 57% to £415,540.
The north-south divide is as prevalent as ever in the price of the new homes market as it is in the overall market. Over the past five years, more than half of UK regions saw the average price of new homes fall, with the north experiencing the greatest fall of 10% to a mean price of £157,190. In 2012, flats, at 37%, were the most popular type of new property sold, followed by terraced homes at 24%, and detached properties at 23%. Yorkshire and the Humber had the greatest proportion of terraced properties sold, at 30%, with Greater London seeing the highest proportion of sales of new build flats in 2012, at 88%.
Craig McKinlay, new mortgages director for Halifax says: “In a relatively flat housing market, the new homes market has changed enormously over the past five years. We have seen a lot of positive sentiment towards the new homes market, with various schemes launched to get the house building industry moving and changes in policies and deposit requirements allowing shared equity buyers to participate more fully in the new build market.”
In March 2012, the Government launched its so-called NewBuy Guarantee scheme to help people with smaller deposits, to secure up to a 95% loan-to-value mortgage on new-build properties from participating builders in England.
- What will happen next to the UK economy?
- How do we defuse the UK student debt time bomb?
- The Bank of England blows its own trumpet but what purpose is it now serving?
- Oh those ghoulish gold bugs
- Tesco shares rise as retailer paves the way for new CEO
- Government incentive to encourage retirees to delay taking state pension slashed by almost 50%
- Millions of retirees to be offered free and impartial guidance under new pension rules
- Pension reforms: The six points savers need to know
- "Should I stay or should I go?" What to consider if your investment fund is under-performing
- Which towns pay the highest amount of income tax in the UK?