Is there a price premium for new homes?

Is there a price premium for new homes?

It's easy to see why new build homes are so desirable. People like shiny new things - especially if it's a brand new house to live in. Whether it's a car, gadget or property, there will always be a premium payable for something that is brand new. Just like different models of cars, the price you can expect to pay for a new build will depend on everything, like a motoring lawyer for any complications that you may run into and especially location and brand.

New build properties have always been more expensive than second-hand homes, often costing between 15 and 20 per cent more. Over the last few years, the price gap has increased even further with some new build properties commanding between 30 and 40 per cent more than older homes, although this is partly down to government incentice schemes.

 

Recent data shows us that average price of a resale property in Sandwich is £176,000. In order to get a decent sample size, we need to look at the regional data for new build pricing against second hand stock. In doing so we can see there is a premium of around 26 per cent. That means the average newly built home in our area commands a price of £222,000.

 

There are several benefits of owning a new home: they don't need any work done to them when you move in, so you won't have to worry about redecorating previous owners' tastes. Utility bills are often cheaper because they are built with energy efficiency in mind - homes built after 2013 save around £1,400 per year on energy and gas bills.

 

New rental properties often cost slightly more to than older rental homes, although the price differentiation isn't as dramatic as sales prices.There is also a selection of new build properties under construction with ‘build to rent' in mind, a scheme where the sole purpose is to build new homes for the purpose of long-term rentals, with the management company acting in the role of the landlord. The average local rental property per month is £900, while new build commands around £1,000.

 

Whether you're looking for your own brand new piece of Sandwich or not, we'd love to talk through your options buying or selling in our area. As the main local market experts we're available to help you pick the ideal home for you, and if you're selling we can make sure you get the optimum price for your home.

 

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