According to latest analysis conducted by Halifax, New Towns offer homeowners the potential to benefit from significant price growth, as well as being a great stepping stone for first-time buyers.
With the government’s plan to build 1.5 million new homes in England over the next five years, and with a modern generation of New Towns being an important part of its house-building agenda, Halifax has analysed New Town house price trends over the past three decades to understand how these locations have performed compared to the wider market.
New Town house prices
According to Halifax, New Towns (towns that haven’t developed gradually, but that are instead planned and built by the government) have kept pace with national house price growth over the past ten years, recording a 68% increase compared to 69% for the UK as a whole. However, in several New Towns, property prices have risen much more sharply, such as Antrim in Northern Ireland and Cwmbran in Wales, which have seen price rises of 118% and 88% respectively.
If you compare date from the past three decades, the average price of a New Town property has risen by 441%, slightly behind the average for the whole of the UK, where prices are up by 454%. However, some New Towns have seen much steeper price increases, such as Crawley in the South East, where property prices have risen by 543% since 1994, from £63,712 to £409,836.
First-time buyer value
When it comes to affordability, some New Towns present an attractive option for first-time buyers, including Peterlee, Washington and Skelmersdale in The North East, and Irvine and Cumbernauld in Scotland. In these New Towns, properties are between 22% and 39% cheaper than the average for the wider region.
‘New Towns have played an important role over the years in helping to provide additional, affordable housing options across the UK,’ says Amanda Bryden, Head of Halifax Mortgages.
‘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 first-time buyers.’
Sustainability is key
Amanda is keen to stress that while affordability is key, it shouldn’t be the government’s only consideration.
‘It’s vital that a New Towns policy prioritises affordability and sustainability,’ she says. ‘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.’