New data shows that the amount that people will pay for new-build houses, compared to older houses, is increasing.

What does this mean for you, the potential investor? Simply put, a new-build home in the UK, on average, is worth about £425,186 and commands a premium of 52% over an existing property. This premium has grown by a fifth in the last year alone. So, if you’re buying a new-build property, you’re paying significantly more than you would for an equivalent, older property.

Digging deeper, this trend varies across different regions. The North East, for instance, is currently leading the pack with new homes fetching a stunning 83% more than existing homes in the area. Scotland, the East Midlands, the North West, West Midlands, and Wales all also command new-build premiums of over 60%.

On the flip side, London sees the smallest new-build house price premium at 17%, which may be surprising given its reputation as a high-value property market. This suggests that London’s market is more balanced between new-builds and existing properties, or it might be that there is less demand or capacity for new properties in London.

If we break it down by local authority, Essex’s Harlow is in pole position, where a new-build property is worth a staggering 133% more than an existing property. Other local authorities such as Blaenau Gwent, Gravesham, West Dunbartonshire, and Preston also display strong new-build markets, all with premiums well over 100%.

It’s interesting to note that this trend of increasing new-build premiums isn’t a blip but a growing wave. Over the last year, the North East, North West, and Scotland have all seen their new-build house price premium rise by around a quarter.

Despite the current economic uncertainty, market fluctuations, and interest rate hikes, the residential property market, particularly new-builds, appears resilient. The rise in new-build premiums suggests that developers remain confident about the long-term prospects of the property market.

In conclusion, if you’re thinking about investing in property, considering new-build homes might be a wise move. They’re valued more highly than existing homes and that value is increasing. Just remember that as with all investments, it’s important to do your homework, understand the market trends, and consider your personal financial situation before taking the leap.