Havering and Redbridge in top London boroughs for new-build price rises

The new Lombard Court council housing development in Romford. Picture: Havering Council/Keith Brown

A new council housing development in Romford. - Credit: Havering Council/Keith Brown

Redbridge and Havering have seen some of the most dramatic new-build house price increases in London over the last five years, new figures suggest.

According to research by building inspectors HouseScan, the average new build in Havering is now sold for £406,641 compared to £318,651 in 2015.

Additionally, the average price of an existing property in the borough in 2015 was £298,502 and is now £370,626.

This is an increase of 28 per cent for new builds and 24pc for existing builds, and puts the area in the top five London boroughs by that measure.

Additionally, neighbouring Redbridge was found to be the London borough with the highest percentage increase in new-build house prices over the period, with a hike of 31pc for new builds and 21pc for existing builds.

London has seen the lowest rate of new-build house price growth in the last five years, HouseScan said, but despite this, new-build homeowners in the capital have still enjoyed a 17pc lift on average in the value of their property.

The picture is similar in other areas of the country, with West Suffolk experiencing an increase in new-build values by 38pc in five years -16pc more than the 12pc increase seen across the regular market.

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Newport in Wales and Salford in the North West have also seen some of the strongest new-build house prices growth in this time, both up 46pc.

Founder of HouseScan Harry Yates said: “Despite the problematic landscape created due to Covid, the new-build market remains a strong investment for UK homeowners, with values continuing to not only climb but doing so at a far greater rate than existing bricks and mortar.

"While an initial investment in a new-build property will require homebuyers to pay a premium, it’s worth every penny in the long term.

"Even against the backdrop of a global pandemic and a period of prolonged political uncertainty caused by the EU referendum, new build values have remained resilient and registered some extremely strong uplifts over the last five years.”

The City of London, Oldham near Manchester and Glasgow have also seen some of the strongest new-build price performances when compared to the regular market.