By David Fuller
New data shows that Leeds is the best location in the UK for building new homes in terms of value, house price growth, planning success and demand for property.
Figures from Argyll Property Partners show that new build homes in the northern city are worth 41 percent more than existing properties there. What’s more, prices of recently built properties are also growing faster than they are anywhere else, appreciating by 13 percent year on year.
“Property values for new builds in Leeds are seeing double digit growth as increasing employment drives demand for homes,” said Brian Markovitz, director of Argyll Property Partners. “The significant gap in the price of new homes compared to existing properties means there are healthy profits to be made, while the high transaction figures suggest homes should be relatively easy to buy and sell.”
Northern cities dominate the list of areas which offer the best investment opportunities for new build homes. Birmingham, Cornwall, County Durham, Wiltshire, Bradford, Bristol, Manchester, the East Riding of Yorkshire and then Liverpool all follow behind Leeds in the research’s final standings.
However, high property values in parts of the South-East mean that local authorities, particularly in Surrey and London, perform poorly in terms of new build affordability. Surrey Heath was found to be the worst local authority for developers of new homes.
Once complete, new homes in Surrey Heath are usual worth 23 per cent less than existing properties in the area. Homes in the rural area may also be harder to buy and sell, with monthly transactions in the area 50 percent lower than the nationwide average.
However, the average value of new homes in Surrey Heath is still rising 7 percent year-on-year
Hambleton, Epsom and Ewell, Ribble Valley, Richmondshire, Pendle, Spelthorne, Three Rivers, Hammersmith and Fulham, and Islington were also among the worst performers.
“It’s noticeable that two London boroughs feature close to the bottom as Stamp Duty, high land values and a decline in transactions combine to hamper Prime Central London’s attractiveness to developers,” said Markovitz.
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