UK New Build Premium Analysis 2026

New-build homes accounted for 10,043 of 451,709 total residential transactions (2.2%) across England and Wales in the past 12 months. This analysis examines the new-build premium — or discount — in every county to help developers understand where newly built homes command higher values than existing stock.

The strongest new-build premiums are found in Swansea (+74.1%), Cardiff (+72.2%), Tyne and Wear (+65.5%), Lancashire (+51.5%), West Yorkshire (+47.4%). These are markets where buyers willingly pay more for new construction, supporting strong development viability.

A positive premium is the clearest indicator that development finance schemes can achieve end values above comparable second-hand stock, de-risking the appraisal.

Conversely, Gwynedd (-100.0%), Dorset (-51.7%), Surrey (-48.9%), Worcestershire (-47.5%), Merseyside (-35.9%) see new-build properties trading below existing stock. This may reflect oversupply of new-build flats, Help to Buy withdrawal effects, or a market preference for period character.

Developers working in discount markets should focus on premium specification, energy efficiency, and lifestyle features to differentiate from existing stock.

The most active new-build counties are Greater Manchester (620 completions), Cardiff (552 completions), Greater London (509 completions), Bedfordshire (429 completions), Kent (376 completions).

High new-build volumes indicate both planning consent availability and proven buyer demand — two essential factors for any development finance application.

Understanding the new-build premium landscape is critical for development appraisals. In premium markets, developers can confidently project end values above comparables. In discount markets, the focus shifts to cost control and specification.

Whether building in a premium or discount market, Construction Capital can source competitive development finance terms from our panel of 100+ lenders. Submit your scheme via our deal room for indicative terms within 24 hours.