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The Average New-Build Have Increased In Value
The average homeowner is thought to spend 21 years in a home on average , so Warwick Estates analysed new-build and existing house prices between 2000 and 2021 and found that across England and Wales, the average new-build has increased in value considerably.
In 2000, the average new-build cost £92,234, but today, this has increased to £343,185 - a 272% increase. While the existing market has also seen impressive growth, the average house price has increased by just 254% in comparison.
The premium attached to new-build homes has also jumped by some margin. In 2000, the average new-build home cost £17,805 more than the average existing property . Today, this premium has climbed to £79,426.
London has seen the biggest jump in new-build values, up from an average of £133,568 in 2000, to £525,927 - a 294% increase and 19% more than the existing market where prices are up 275%.
The East Midlands (290%) and the East of England (290%) have also seen some of the largest increases and have also outperformed the existing market to the largest extent, with a 27% and 26% respective difference in price growth during this time.
However, all areas of England and Wales have seen new-build house price growth not only exceed 200% since the start of the new Millennium but also outpace the existing market.
The East of England has also seen the largest increase in new-build premiums. In 2000, new-builds were valued £19,345 higher than existing homes, but today this has climbed to £97,435 - a £78,090 increase.
The East Midlands (£73,222), the West Midlands (£66,255) and the South West (£60,998) have also seen the premium attached to new-build homes climb by more than £60,000 in the last two decades.
A Climb In Premium
COO of Warwick Estates , Bethan Griffiths, commented:
“New-build homes have always commanded a premium and this premium has climbed considerably in the last two decades as house prices have risen, but also the quality and offering of the new-build sector has evolved.
While getting a foot on the new-build ladder may present a tougher task for aspirational homeowners initially, they are far more likely to see their investment not only hold its value but increase at a greater rate than the existing market. So it can be well worth the additional initial financial investment for those with a long-term view of homeownership.”
Table shows the increase in the average value of new-build and existing homes between 2000 and 2021
| Location | Average NB house price (Mar 2021) | Change - 2000 to 2021 (£) | Change - 2000 to 2021 (%) | Average Existing house price (Mar 2021) | Change - 2000 to 2021 (£) | Change - 2000 to 2021 (%) |
| London | £525,927 | £392,359 | 294% | £503,386 | £369,173 | 275% |
| Yorkshire and The Humber | £243,791 | £180,320 | 284% | £181,826 | £131,985 | 265% |
| East of England | £404,852 | £300,939 | 290% | £307,417 | £222,849 | 264% |
| East Midlands | £302,701 | £225,162 | 290% | £209,735 | £151,941 | 263% |
| North West | £262,731 | £192,821 | 276% | £184,362 | £133,006 | 259% |
| Wales | £252,646 | £182,754 | 261% | £182,699 | £131,557 | 257% |
| West Midlands Region | £305,790 | £217,404 | 246% | £214,363 | £151,150 | 239% |
| South West | £348,888 | £250,269 | 254% | £281,886 | £198,732 | 239% |
| South East | £420,199 | £298,520 | 245% | £344,314 | £237,522 | 222% |
| North East | £217,985 | £147,457 | 209% | £138,631 | £91,648 | 195% |
| England and Wales | £343,185 | £250,951 | 272% | £263,760 | £189,330 | 254% |
Data sourced from the Land Registry House Price Index - New-build vs Existing (March 2000 to March 2021 - latest available)
Table shows the new-build price premium in 2000 and 2021 and the change between the two
| Location | Average NB house price (Mar 2000) | Average Existing house price (Mar 2000) | NB price premium (2000) | Average NB house price (Mar 2021) | Average Existing house price (Mar 2021) | NB price premium (2021) | Change in NB premium (£) |
| East of England | £103,913 | £84,568 | £19,345 | £404,852 | £307,417 | £97,435 | £78,090 |
| East Midlands | £77,539 | £57,794 | £19,744 | £302,701 | £209,735 | £92,966 | £73,222 |
| West Midlands Region | £88,386 | £63,213 | £25,173 | £305,790 | £214,363 | £91,427 | £66,255 |
| South East | £121,678 | £106,792 | £14,887 | £420,199 | £344,314 | £75,885 | £60,998 |
| North West | £69,910 | £51,357 | £18,553 | £262,731 | £184,362 | £78,368 | £59,815 |
| North East | £70,528 | £46,982 | £23,546 | £217,985 | £138,631 | £79,355 | £55,809 |
| South West | £98,618 | £83,154 | £15,464 | £348,888 | £281,886 | £67,002 | £51,538 |
| Wales | £69,892 | £51,142 | £18,750 | £252,646 | £182,699 | £69,947 | £51,197 |
| Yorkshire and The Humber | £63,471 | £49,841 | £13,630 | £243,791 | £181,826 | £61,966 | £48,335 |
| London | £133,568 | £134,213 | -£645 | £525,927 | £503,386 | £22,541 | £23,186 |
| England and Wales | £92,234 | £74,430 | £17,805 | £343,185 | £263,760 | £79,426 | £61,621 |
Data sourced from the Land Registry House Price Index - New-build vs Existing (March 2000 to March 2021 - latest available)
- Warwick Estates was founded in 2007, and acquired by Aldridge in 2017 with the ambition to grow and strengthen the business.
- The goal of growth is one that unites the Aldridge family today across the diverse range of commercial and philanthropic activities in which it operates.
- Over 40,000 properties are managed for freeholders, asset funds, housebuilders and housing associations - a combined value of over £9bn.
- Annual revenues exceed £10million
- Warwick Estates is run by a newly strengthened management team of industry heavy-weights with decades of combined industry experience - chaired by Adrian Ringrose, former CEO of Interserve
- Current head-count is 186 staff at seven office locations throughout England
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