New-build homes in Great Britain now command an average 30% price premium over existing properties, according to research from UK Property Development.
The gap has widened by an estimated 6.2 percentage points since 2016.
In England, the new-build premium stands at 28.9%, up from 23.5% a decade ago.
There are substantial differences between regions. The North East has the largest premium in 2026, with new builds priced 60% above existing properties.
Scotland follows with a 55.4% premium, while the gap stands at 44.7% in Wales, 41.8% in the East Midlands and 40.6% in Yorkshire and the Humber.
Scotland recorded the largest increase over the decade, with its new-build premium widening by an estimated 8.3 percentage points, from 47.1% to 55.4%.
The gap increased by 7.9 percentage points in the East of England, 7.8 points in the North East and 7.6 points in the South West. The South East recorded an increase of 6.8 points.
London is the only region where new-build homes are cheaper than existing properties. The average new-build price in the capital is 10.5% below that of an existing home in 2026, compared with an 8.5% discount in 2016.
Andy Morrison, director at UK Property Development, said: “New-build homes continue to attract a premium in most parts of Great Britain, reflecting factors such as modern specifications, energy efficiency, and buyer demand for homes requiring less immediate maintenance.
“What’s particularly notable is that the premium has widened over the past decade across almost every region, suggesting that the relative value buyers place on new-build properties has strengthened over time.
“This is likely largely due to the increasing public concern around energy efficiency, both on household bills and in our individual contributions to tackling climate change.”
Morrison added: “New-build homes cost more to buy, but that is because of the great benefits and long-term cost savings they provide.”
Comments (4)
@Fromrichmond
Might I respectfully suggest you have a bias based on the product you develop? Your username rather indicates the multi-million pound market that you develop in. I applaud you for what you create, but small schemes with Miele appliances are not the “average” new build for the rest of the country.
Most new builds are significantly lower quality than perhaps you might build and for no REAL apparent reason that I can see, really do seem to have a massive uplift over an equivalently sized house or bungalow two streets over.
In the area that I cover, the value of a ten year old new build will often have remained at its original purchase price while the local market has risen to meet it.
That premium for new may well be worth it to some, but I would far rather buy a tired house from the 50’s, 60’s or 70’s and refurbish it while living in rented than go through the agonising stress of being bullied by a fake purchase deadline by one of the larger new homes builders. Less stressful and even with a project manager and expensive contractors, probably more cost effective.
Is there an Adam Walker in the house?
Adam? Are you there Adam?
These premiums are outrageous. New builds are poorly built, compared to older properties, often have smaller plots and are crammed into cramped estates or towns with no extra amenities. Various government schemes have been developed to make these properties more affordable mostly without success. 40 year mortgages are often the only way anyone can afford them. To try to justify these premiums by using energy and climate concerns is just another example of political brainwashing. The UK generates a minute amount of the worlds’ CO2 and the government has it within its power to create policies to change energy costs. This is developer profiteering, no more, no less.
Rubbish I am a developer
We build small schemes – high quality Miele appliances – top range bathrooms fully tiled, wooden flooring – large plots
We do not try to justify premiums the fact is our homes are very energy efficient – buyers like that .
I cannot think of a single buyer of ours who has taken a 40 years mortgage – this years 76% of our buyers have been cash buyers. We are selling very well in a tough market
It is called SUPPLY and DEMAND