Propertymark: Scotland’s new builds up 3.8% to £364,912

Propertymark’s analysis of instruction prices regarding newbuild residential properties continues to show sizable regional differences. 

While it is important to note that individual average newbuild pricing across various areas is wholly powered by aspects such as the precise location of any development, the complexities involved with planning, actual property type, physical costs of both materials used and labour costs involved. 

The latest data sees the average price of a newbuild property in Scotland jump 3.8% from £351,414 to £364,912 year on year, a figure that is broadly in line with average house price growth across the UK. 

Across London in January, the price of a newbuild home fell 13.3% year on year, from £897,135 to £777,688. Any dip in such pricing does not necessarily denote a slowdown in consumer demand or appetite; however, it could potentially point towards a shift in the types of homes currently being built. 

Across London, around 18,500 homes are expected to be completed by the end of 2026, with an additional 15,000 homes expected to be finished by the end of 2027. Combined, this figure sits significantly below the UK Government’s own target of wanting 176,000 new dwellings completed across the capital within two years. This will likely play an important role in how future average newbuild pricing may pan out across the next twelve months.

It’s prudent to note that, over the last few years, with advancements in technology and new and enhanced transport links, many people have taken a refreshed view of their location, which has uplifted demand in certain outlying regions compared to recent years.

Nathan Emerson, CEO of Propertymark, comments:

“Across the entire UK, we sit in a phase where both the UK Government and all devolved administrations are extremely keen to achieve their own housing targets.

Looking at England, there is a drive to build 1.5. million homes across the current parliamentary term. However, current output is not keeping pace with this initial ambition and real-world demand for such dwellings continues to mount up.

Access to high-quality and sustainable housing is the fundamental baseline needed for communities to flourish and for regional economies to function well. As the population continues to grow across the entire UK, there must be capacity at all levels to deliver new housing stock, from conception to completion.”

Note: Average new build instruction prices for Northern Ireland are not included in this quarter, due to insufficient base data volumes.