New town house prices rise faster than national average

February 2, 2017 by Brendan O'Neill

House Prices

According to a report produced by the Halifax, property prices in new towns built after World War II are increasing at a much faster rate than the national average house price.

The report states that since 2006, property prices in the UK’s new towns have increased by £55,500 or 32%, with a typical house costing £228,902. Across the country, other homes have increased by £51,600 or 26%. The study suggests that the strong increase in new towns may be due to the soaring house prices in London, which may have filtered out to some of the new towns on the outskirts of the capital.

According to a housing economist at the Halifax, Martin Ellis, a number of the new towns are located within easy commuting distance from the major centres where property is often more expensive. The south east of England is a prime example, where property prices are way below those in London. House buyers are attracted by the lower prices and proximity to major centres, increasing demand and prices of the properties.

However, not all new towns have experienced house price growth, with those in Glenrothes, Runcorn and Skelmersdale falling since 2006. Many of the new towns were built following the war to accommodate those whose homes had been bombed, or lived in sub-standard housing. Since that time, garden towns and garden villages have been created, which are similar to the new towns.

For advice when buying a home in a new town, consult a CeMAP qualified mortgage adviser.