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Area Values Raised by New Build Homes

Property portal Zoopla has examined how local area property values have improved when a greater proportion of new build housing is constructed nearby.

According to its data, areas with a new build concentration in excess of 25% have increased in value by 29.7% over the past five years, which surpasses the 23.6% average rate of price growth.

Figures from Hometrack and Zoopla also revealed that the country’s top location for high new build concentration, outside of London, is Milton Keynes. New build values for homes in this area account for over a third of property sales.

Zoopla analysed Hometrack data to learn which areas of the UK had the highest concentration of new build values as a major part of all sales. Milton Keynes is followed closely by Crewe, which is currently at 29.6%, which is one of only two places in Northern England to rank in the Top 10. (The other is Middlesbrough in Teesside.) Ilford in Greater London is in third place at 28.8%.

At the other end of the spectrum, Sandness, a Shetland village, has the smallest proportion of property sales allotted to new builds, at only 0.5%. Next is Orpington in Greater London, at 2.7%, followed by Dumfries in Scotland at 2.9%.

 

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On a regional level, research also reveals that the highest concentration of new builds are in Southern England, which accounts for five of the top 10. Next is the Midlands, with three communities, followed by Crewe and Middlesbrough in Northern England.

Zoopla spokesperson Lawrence Hall commented that each year new housing sales typically account for 10% of property sales, but this does vary from location to location. The new data provides a valuable overview of where new build values are highest outside of London. Developer investment is clearly benefiting areas such as Milton Keynes and Crewe.

While a correlation exists between a high proportion of new builds and increased property growth, new homes are usually developed in high demand areas, which has already galvanised an increase in property values.

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