For the year ending August 2016 new build prices rose, on average, by 6.0%. Although this shows an increase on the previous three months, this increase has actually narrowed when compared to the same period to year ending August 2015 and is now 0.5% below the national average seen last year.
Shaun Peart, Managing Director of LSL Land & New Homes comments: “The regional picture continues to show a North/ South divide. Greater London has retained a slight lead over other regions, with a growth of 8.6%. The South East and East Midlands are in joint second place for fastest growth rate at 7.2%, closely followed by: East Anglia 7.0% and South West 6.7%. However, West Midlands bucks this pattern with only 3.3% growth, but still up by 0.6% on last month. Scotland shows the greatest growth in the North, reaching 5.0%. The North West has increased to 3.6%, with Yorkshire
and Humberside sitting at 2.5% and Wales at 3.1%. For only the second month this year, the North East has moved to positive growth at 0.8%.”
First Time Buyers
In terms of first time buyers, LSL Land & New Homes 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. 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, Yorkshire & the Humber regions. The South East, East Anglia and the South West are relatively expensive but are showing strong house price growth. Even allowing for higher average earnings, the HPE ratio for Greater London is twice the regional average rate.