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.
- Tui Travel tipped as a "Buy" despite global unrest hitting bookings
- 10 investment mistakes and how to avoid them in the 2016 ISA season
- Mortgage rates may be low but fees have surged to a near two-year high
- Bad news for half-term holidaymakers as pound falls to one-year low against the euro
- Savers urged to act fast to make the most of higher rate pension tax relief while it still lasts
- Pension drawdown risks in the spotlight after another painful day on the markets
- Five tips to ensure a successful home insurance claim
- Pension funds fall 2.5% after a turbulent January
- Expert comment: "Time to hit the panic button?"
- Commodities cast a long shadow over earnings season