Premium has widened in almost every region over the past decade, with Scotland recording the sharpest increase
New-build homes across Great Britain now carry an average price premium of 30% over existing properties, up from 23.7% a decade ago, according to research published by UK Property Development.
The study compared average house price data for new-build and existing homes across Great Britain, measuring the premium in each region in 2016 and again in 2026. Across England specifically, the premium rose from 23.5% to 28.9% over the same period.
At a regional level, the North East records one of the highest premiums, with new-build homes costing an average of 60% more than existing stock. Scotland follows at 55.4%, ahead of Wales at 44.7%, the East Midlands at 41.8%, and Yorkshire and the Humber at 40.6%.
London is the only region where new-build homes are priced below existing properties on average. The capital's new-builds are currently 10.5% cheaper than existing homes, compared with an 8.5% discount in 2016 — a divergence of 1.9 percentage points over the decade.
Scotland has seen the largest widening of the gap over the 10-year period, with its premium growing by 8.3 percentage points. The East of England recorded a rise of 7.9 percentage points, followed by the North East at 7.8 and the South West at 7.6. The South East saw its premium grow by 6.8 percentage points.
"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," said Andy Morrison (pictured right), director at UK Property Development.
"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.
"New-build homes cost more to buy, but that is because of the great benefits and long-term cost savings they provide."
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