LSL New Build Index - The market indicator for New Build Homes October 2016

26/10/2016
By: LSL Land & New Homes

LSL New Build Index - The market indicator for New Build Homes October 2016

In the year to end September 2016 new build house prices rose on average by 5.8% across the UK. The regional picture continues to show a North/South divide, with crude average growth (excluding Greater London) now standing at 4.2%, down against last year’s figure of 4.4%, according to the LSL New Build Index.


Shaun Peart, Managing Director of LSL Land & New Homes comments: “Greater London has retained a slight lead over other regions, with a growth in new build house prices of 9.1%, which is down on last year’s figure of 10.1% The South East is in second place for growth at 7.4% closely followed by the East Midlands which achieved 7.1% growth. The South West maintained their growth rate at 6.6%. East Anglia fell back to 5.5% new build house price growth, and West Midlands fell back further to 1.6% This is below the low last month of 3.3% in the West Midlands and is significantly lower than September 2015, when growth in new build house prices in the region was at 5.4%. Prices in Scotland show the greatest growth in new build house prices in the North, at 4.3% compared with 3.2% in 2015. The North West has decreased slightly against last month at 3.4% but remains ahead of the rest of the North region in our report, with Yorks and Humberside sitting at 2.4% and Wales at 2.5%. The North East has maintained positive growth at 0.7%.”

First Time Buyers

The First Time Buyers HPE Index looks at the average cost of buying a 70 sq m 2 bed home in each region. It compares the property price with the gross average earnings of a full time employee in that region. New Government figures were released in August that show an improving picture for new buyers. On average a 70 sq m home costs the equivalent of 4 years and 4 months gross earnings, which is an improvement on the five and a half years previously reported. There remains a wide regional variation in this figure, but only London and the South East require earnings above five years. A new starter home on an average salary is most easily afforded in the North East and Yorkshire & the Humber. However house price growth is still relatively slow in these regions, whereas the East Midlands shows strong house price growth as well as a good level of affordability.

Click here to read our full report

New Build Index Oct 2016 infographic

Click here to view an interactive price-change map

Click here to explore historical house sale prices

Click here for the New Build Index archive

Providers of the largest network of surveyors, estate agencies and asset management teams in the UK