Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
New-build Price Premium Reaches 30% Nationwide
New-build homes in Great Britain now command an average price premium of 30% over existing properties, according to research from UK Property Development. The gap between new-build and existing home prices has widened by an estimated 6.2 percentage points since 2016.
In England, the new-build premium stands at 28.9%, up from 23.5% a decade ago. There are notable regional differences in the premium. The North East has the largest premium in 2026, with new-builds priced 60% above existing properties. Scotland follows with a 55.4% premium, while the gap is 44.7% in Wales, 41.8% in the East Midlands, and 40.6% in Yorkshire and the Humber.
Scotland recorded the largest increase in new-build premium over the past decade, rising by an estimated 8.3 percentage points from 47.1% to 55.4%. The East of England saw a 7.9 percentage point increase, the North East 7.8 points, and the South West 7.6 points. The South East recorded an increase of 6.8 points.
London is the only region where new-build homes are cheaper than existing properties. In 2026, the average new-build price in the capital is 10.5% below that of an existing home, compared with an 8.5% discount in 2016.
Implications for Letting Agents and Inventory Clerks
The widening price gap between new-build and existing homes may impact rental valuations, property management, and inventory assessments. Regional variations in the premium could influence demand and expectations for new-build lettings, particularly in areas with the highest price differentials.
Source: Property Industry Eye