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Thematic report · 5 min read read · Updated July 2026
UK New Build Premium Report, H1 2026
6,896 new build transactions analysed. County-by-county premium rankings.
01
The New Build Premium Landscape
Across 48 counties, 6,896 new build homes were sold in the past 12 months — representing 1.2% of all residential property sales. But the premium buyers pay for a new build home over an older, existing property varies dramatically by location.
This report analyses the average new build premium at county level, revealing where developers can command the highest margins on new homes — and where new build stock is, surprisingly, selling at a discount to older properties.
This report is built from HM Land Registry Price Paid Data, the same transaction-level source underlying the official UK House Price Index, covering house prices and sales across England and Wales. Scotland and Northern Ireland use separate registration systems (Registers of Scotland and Land and Property Services) and are not included in this analysis.
02
Highest New Build Premiums by County
| # | County | New Build Premium | New Build Sales | Median Price |
|---|---|---|---|---|
| 1 | Swansea | +84.9% | 51 | £195,000 |
| 2 | Lancashire | +77.5% | 118 | £161,000 |
| 3 | Cumbria | +77.4% | 36 | £162,500 |
| 4 | County Durham | +75.8% | 108 | £126,500 |
| 5 | Tyne And Wear | +73.0% | 107 | £150,000 |
| 6 | Cardiff | +72.5% | 204 | £265,000 |
| 7 | Nottinghamshire | +72.0% | 191 | £194,000 |
| 8 | Essex | +57.7% | 196 | £342,500 |
| 9 | Greater Manchester | +51.6% | 222 | £213,860 |
| 10 | Oxfordshire | +49.0% | 97 | £392,500 |
| 11 | Derbyshire | +45.1% | 184 | £213,375 |
| 12 | Newport | +44.0% | 139 | £227,500 |
| 13 | Staffordshire | +42.7% | 161 | £227,000 |
| 14 | Suffolk | +41.5% | 107 | £282,500 |
| 15 | Cheshire | +41.4% | 73 | £272,500 |
Swansea tops the table with an average new build premium of +84.9%. For developers, this translates directly into higher profit margins on new-build schemes funded with development finance.
03
Where New Builds Sell at a Discount
A negative new build premium does not necessarily indicate a poor market for developers. It often reflects the mix of new build stock — for example, a county dominated by new-build flats will show a lower average price than one dominated by detached houses. Context matters.
04
Implications for Development Appraisals
The new build premium is a critical input to any development appraisal. In counties where premiums exceed 15%, developers can afford to pay more for land and still achieve target margins. Where premiums are thin or negative, the focus shifts to build cost efficiency and exit strategy.
Lenders structuring development finance will scrutinise the assumed end values carefully. In high-premium counties, comparable evidence for new build pricing is readily available. In low-premium areas, valuers may take a more cautious approach.
05
Funding Your New Build Scheme
Whether you are targeting a high-premium county or seeking to unlock value in a competitive market, the right finance structure makes all the difference. Mezzanine finance can top up senior debt in high-value schemes, whilst bridging loans enable rapid site acquisition.
Submit your scheme via our deal room and we will source the most competitive terms from our panel of 100+ lenders.
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From 12% p.a. · Up to 85-90% LTGDVMore intelligence
Related
market reports.
Swansea Property Market: Prices, Trends & Development Finance (2026)
5 min readLancashire Property Market: Prices, Trends & Development Finance (2026)
5 min readCumbria Property Market: Prices, Trends & Development Finance (2026)
5 min readCounty Durham Property Market: Prices, Trends & Development Finance (2026)
5 min readTyne and Wear Property Market: Prices, Trends & Development Finance (2026)
5 min readCommon questions
Frequently asked
questions.
What is the average new build premium in England and Wales?
Based on our analysis of 6,896 new build transactions, the average county-level new build premium is +32.9%.
Where do new builds command the highest premiums?
Swansea has the highest average new build premium at +84.9%, based on 51 new build transactions in the past 12 months.
Does a negative new build premium mean developers lose money?
Not necessarily. A negative premium at county level can reflect the mix of new build stock — for example, predominantly flatted schemes in a county where detached houses set the benchmark. Individual scheme profitability depends on build costs, land price, and local demand.
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