How Much More? New Build ££
- Historically, experience tells us that the premium paid for new build properties increases in a strong market but narrows again in a slower market as developers reduce prices in order to achieve sales.
- While not directly comparing like for like, it does raise some interesting questions. Few would say that 2017 was a particularly strong year for the market and yet the new build premium continues to rise.
- Since 2010, the differential in price for newly built homes compared to second hand properties has steadily widened. In 2017, new properties sold, on average, for 28% more than second hand properties.
- This effect is likely the result of a combination of factors including Government support for the sector in the form of Help to buy, the lack of supply of available properties and the rising quality of new schemes.
- During the last 3 months, only 1% of residential property sales in West Oxfordshire were new build, accounting for £2.59M in value.