Greater Manchester takes the crown as the most valuable area for new-build housebuilders in the past year. And there’s plenty of room for further growth.
Throughout the UK, £57bn worth of new homes came to the market in the last year, according to new homes specialist Stone Real Estate. This brought forward 203,900 new-builds selling for an average of £283,253. As housebuilding in the UK has been moving in the right direction with the industry delivering more homes, it’s important the sector keeps striving to meet demand with new-build supply.
Across the UK, the majority of completed new builds are in England. Accounting for £51bn worth of value, 169,020 new homes have come to the market with an average value of £302,642.
Michael Stone, founder and CEO of Stone Real Estate, said: “It’s very encouraging to see that despite the backdrop of political turbulence and slower house price growth over the last year, the nation’s housebuilders have continued to deliver a staggering amount of stock to the market.
“Not only does the completion of these homes help meet homebuyer demand, but the value of these properties is also helping to stimulate the market and rejuvenate house price growth after months of Brexit uncertainty.”
Areas in the north and Midlands lead the way
Recent research from Stone Real Estate also shows where the most lucrative new-build hotspots are on a granular level. Greater Manchester takes the top spot with a total of £1.4bn coming to the market from new-build property values in the past year. The city region saw 7,080 new builds competed in the last 12 months with an average value of £205,237.
West Yorkshire and the West Midlands are also some of the top new-build markets for housebuilding. They saw £1.1bn and £1bn of value hitting the market in the last year, respectively. Leeds and Birmingham in particular have become property hotspots in these regions. Both are attracting growing numbers of people and businesses away from London.
Demand for more housing
Despite the new-build numbers, there is still demand for more housing across the UK. This is especially the case in regional cities where demand outweighs supply. Demand for private rental accommodation is also expected to increase throughout the UK. The trend is led by preferences, expectations and the ability to own a home changing over time.
In Greater Manchester there is room for growth in the rental sector and housing market. Seven local authorities in the city region are behind on their housing delivery targets. As demand continues to rise there, many buyers and investors are likely to favour the expanding new-build market.
Additionally, the government has announced a £1bn property development fund for the north. A further £600bn worth of investment is going towards infrastructure projects that are expected to benefit the north and Midlands. This is expected to bring significant regeneration, development and investment to these regions, increasing demand for additional housing and boosting property prices.
BuyAssociation offers a range of exciting new-build investment opportunities across the north and Midlands. Check out our investments page for a snapshot or sign up free of charge for full access.
