The bottom appears to have fallen out of the newbuild market according to new research from Propertymark.

Its data, pulled together by TwentyEA, shows that average prices for new instructions for newbuild properties are down in six of the UK’s regions year on year ranging from just £2,000 in Northern Ireland to £122,770 in London.

Other regions where newbuild prices have dropped include Wales (-£24,076), the East Midlands (-£43,078), the North East (-£37,000), the South East (£20,530) and the South West (£230,826).

Despite these surprising reductions, some regions have seen rises including the East of England (+£20,763) and the West Midlands (+£13,182).

Propertymark hasn’t offered its view on the so many areas are seeing the marketed prices of newbuild properties reduce so dramatically, but several key reasons are obvious to any property industry market watcher. These include an extended period of high interest rates and an over-supply of newbuild properties for sale as transaction levels have reduced, leading to developer cutting prices to attract sales.

Help to Buy

One other, albeit historic reason is the end of the Help to Buy scheme two years ago, which means first time buyers no longer enjoy significant discounts, within which – towards the end of the Government-funded scheme – some apartment blocks saw half the properties going to Help to Buy purchasers.

“Any house price decreases often represent a positive opportunity for aspiring homeowners to progress with their ambitions regarding ownership,” says Nathan Emerson, CEO of Propertymark.

“We have witnessed a noteworthy mix of price fluctuations regarding new build properties in various areas across the UK.

“However, with many mortgage providers typically willing to lend around five times an annual income, there are still substantial challenges to overcome regarding potential affordability for many when looking at average prices regionally regarding new properties.”