Do new builds in London lose value?

New build premium pricing Just like a new car, a new build house or flat will depreciate in price the minute you turn the key in the door. Even in a rising property market, you may not get your money back when you buy a new build home if you have to sell within a year or two.

Are new builds overpriced UK?

Are new builds more expensive? Yes. According to 2019 data from the Land Registry, the average price of a new build is 29% greater than existing housing. The average price of regular housing was £224,729 whilst new builds were £290,176.

What is the new build premium in London?

In fact, in London as a whole, the new build premium is relatively low. In the South, new build premiums are about 14%. So, what does this all mean? Well, the facts are that the new build premium across the whole of England and Wales is around 25%.

Why are new builds so expensive UK?

“As more bigger houses are sold, so overall average prices have been pushed up. At the same time, a lack of second-hand stock has meant that buyers have turned to new build and as a result more family homes have been sold off-plan.”

Are new builds harder to sell?

Despite new build homes being newly constructed and built with highly regulated and energy-efficient materials, they can depreciate in value very quickly and also be very difficult to resell. This is important to a lender as if they have to repossess, they need to be able to make their money back from the loan.

Why are British houses so badly built?

Experts say the rush to build homes amid Britain’s chronic housing shortage, and the dominance of a few big building firms that use a multitude of subcontractors, are also to blame for poor building standards.

Do you pay a premium for a new build?

If you’re buying a new home, the builder will typically charge something called a ‘new build premium’. This means that you can expect to pay more for a new property than you would if you bought an older property of the same size/in the same area.

Why are houses so expensive UK 2021?

Interest rates have increased from their record lows, making mortgages more expensive. This could reduce demand. House prices have risen extremely fast during 2021 and could “correct” by falling just as quickly. The pandemic is not over and future restrictions can’t be ruled out.

Are new builds a good investment?

Overall, new-build properties are more expensive. Their prices are relatively high, contributing to lower rental yields and potentially diminished capital growth for landlords and investors. However, whilst the financial cost is the most glaring downside when purchasing new-build properties, it is not the only one.

Are new builds poor quality?

Quality and Snags – New builds often get a bad press with stories of poor quality making the headlines. Even with the best new build home, you can still expect snags like doors getting stuck on new carpets or a loose tile.