New build homes raise value of area

Zoopla looked at how property values have changed in areas with a higher proportion of new build housing. The data reveals that areas which have a new build concentration of 25% or more have grown in value on average by 29.7% over the past five years, six per cent above than the national average property price growth rate which stands at 23.6%.

The data also revealed that Milton Keynes is Britain’s top location for the highest concentration of new build properties, outside of London, according to new data from Zoopla and Hometrack, with new homes accounting for over a third (33.2 per cent) of property sales.

Zoopla analysed data from Hometrack to reveal which areas of Britain are home to the highest concentration of new build properties as a share of all property sales. The fast growing, ex new town of Milton Keynes is closely followed by Crewe (29.6 per cent), which joins Middlesbrough in Teeside as one of only two areas in Northern England to have made it into the top 10, and the Greater London town of Ilford (28.8 per cent) in third place.

At the other end of the table, the Shetland village of Sandness has the smallest proportion of property sales accounted for by newly built properties, at only 0.5 per cent. The second lowest is Greater London’s Orpington, at 2.7 per cent, closely followed by the Scottish town of Dumfries with 2.9 per cent.

Regionally, the research also reveals that the highest concentration of new build homes are found in Southern England (five of the top 10) and The Midlands (three of the top 10), with only Crewe (29.6 per cent) and Middlesbrough (20.3 per cent) representing Northern England at the top of the table.

Lawrence Hall, spokesperson for Zoopla comments:“New housing sales account for 1 in 10 property sales each year but this varies across the country. These new findings give us a useful overview of where new builds are most common around the country, outside of London. Clearly, areas such as Milton Keynes and Crewe are benefiting from new investment by developers.

“While there is a correlation between a large proportion of new builds and higher property price growth, new homes are typically developed in areas of high demand, which has already contributed to a rise in property values.”

PICTURE CREDIT: Tessellar

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