UK Property Hotspots for New Build Investment
New-build properties have become the way forward for first-time buyers. However, recent data from Stone Real Estate has shown that certain areas of the UK have become property hotspots, with some proving more profitable than others when it comes to the new build property market.
Last year in the UK, around 203,900 new build properties were completed with an average value of around £282,253. This equates to over £57 billion worth of new homes.
England leads the way for the highest number of new build properties built last year, with around 169,020 new homes being created and a total value of £51.1bn.
Scotland saw 21,290 new builds created, with a total value of £4.3 bn, whilst Northern Ireland had 7,810 new homes and a total value of £1.2bn.
Wales had the least number of new build homes completed last year at 5,780, with a total value of £1.2 billion in the new build property market.
Take a look as we unveil which areas of the UK are considered to be new build property hotspots according to new home specialists and why property demand is on the rise.
The UK’s new build property hotspots
Research on a regional scale shows that the South-East was most profitable for newly built homes, with a total value of over £12 billion.
However, on a granular scale, research shows that Greater Manchester alone received £1.4bn into the new build property market last year. The area saw the creation of 7,080 new builds over the past year, with an average value of £205,237.
West Yorkshire has also become a new build property hotspot, seeing £1.1bn of new build value last year, whilst Birmingham received £1bn into the new build property market. Both of these areas are proving to be increasingly popular, appealing to increasing numbers of buyers and businesses away from London.
Other areas within the top 10 for profitable new builds were Newham with a value of £830 million, Barnet with £767 million and Hackney with £750 million.
Michael Stone, founder of Stone Real Estate, stated how encouraging it was that property builders have been able to add a significant amount of stock to the property market despite the UK’s political climate, Brexit uncertainty and the slowing down of growth in property prices.
He also added how the creation of so many of these new build properties helps to meet growing buyer demand, as well as stimulate the property market and price growth.
Increased property demand
Whilst these areas of the UK are proving successful for new build properties, it seems that there is still room for growth. Demand for property continues to be on the rise, particularly in regional cities.
For the north, the government has confirmed a £1bn property development fund, as well as a further £600bn going towards infrastructure projects, also expected to benefit the Midlands. It is anticipated that these additional funds will provide a further boost in terms of property development, meeting increasing buyer demands and rejuvenating property price growth.
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