House prices in new Towns have kept ace with national trends over the past decade, whilst still offering housing that are 15% cheaper on average, according to new analysis from Halifax.
There has been a 68% increase in property prices over the past ten years, which runs close to the national average of 69%. Some areas have enjoyed even greater growth, such as Northern Ireland, which includes the likes of Antrim (118%), Derry/Londonderry (99%) and Cwmbran in Wales (88%).
Halifax head of mortgages Amanda Bryden says: “New Towns have played an important role over the years in helping to provide additional, affordable housing options across the UK. With the government’s ambitious plan to build a new generation of New Towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.”
Buyers looking for more affordable housing are attracted to new tons, with property prices generally being significantly lower than the regional average. For example, Peterlee offers a 41% discount compared to the North East, whilst Skelmersdale and Peterborough both offer a 27% discount in their respective regions.
There has been a 441% increase in new town property values over the past 30 years, which is only slightly behind the UK’s overall rise of 454%. Crawley has seen the biggest rises (543%) during this period, followed by Craigavon in Norther Ireland (524%) and Hemel Hempstead (520%).
Also commenting, NAEA Propertymark president Toby Leek adds: “One of the main drivers for a robust housing market is ensuring there is a diverse mixture of options available. With an ever-growing population, there must be consideration that certain regions are likely to need a precise provision of housing to ensure supply keeps pace with demand. Across the last 60 years, New Towns have played an important role in delivering the magnitude of housing required.”
“However, with the UK Government’s first Budget only a matter of weeks away, housing will likely form an important subject for inclusion. Today’s figures show that there is strong growth potential in all corners of the UK and across the long term which is likely to remain the case. However, the sector remains keen to see full details regarding the pledge of one and a half million new homes by the end of this parliament.”