Over the past three decades, the average price of a new town property has increased by 441%, a little below the all-UK property type norm 454%
With the government pledging more new towns, the Halifax has produced data showing that housing in such locations tends to be cheaper and more affordable for FTBs.
The lender claims that over the past three decades, the average price of a new town property has increased by 441%, a little below the all-UK property type norm 454%. But the gap has narrowed over the past 10 years, where new towns have kept pace with national house price growth, recording a 68% rise compared with 69% for UK as a whole.
Antrim recorded the strongest growth in house prices of any new town over the last decade, increasing 118% from £102,439 to £223,110. Derry/Londonderry follows, with house prices almost doubling since 2014 (+99%, rising from £101,689 to £202,285). Cwmbran in Wales is next with 88% (£134,540 to £253,392).
Amanda Bryden, head of Halifax Mortgages, says: New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK.
With the Government’s ambitious plan to build a new generation of new towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for FTBs, she said.
It is vital that a new towns’ policy prioritises affordability and sustainability. Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future, she said.
