Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Thinktank: New Build Homes in South England Include £55,000 in Hidden Costs

The Centre for Policy Studies (CPS) estimates that typical new build homes in the South of England contain around £55,000 in hidden costs. These costs are included in the price of new properties, with many buyers reportedly unaware of the amounts involved.

According to the CPS, housebuilders are passing on extra costs incurred to meet affordable housing and net zero requirements. The Negotiator reports that these additional charges are built into the price of an average £450,000 new-build home in southern England.

Alan Hibben, an Associate of the CPS, stated that more than £50,000 in extra amounts are included in the price of such homes, but these are not detailed to buyers. The breakdown includes £10,000 for ‘biodiversity net gain’ and £30,000 for planning obligations, which may cover affordable housing or local infrastructure such as roads. Other costs are attributed to planning fees and delays in the planning process.

Hibben’s calculations highlight the impact of policy decisions on housing affordability, noting that these public-policy costs are embedded in the price of a home. The report suggests that these costs are not made transparent to buyers, as they are incorporated into the overall sale price rather than being itemised.

For letting agents and inventory clerks, awareness of these hidden costs may be relevant when advising clients on new build purchases or managing expectations around property values and affordability in the current market.