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Thematic report · 5 min read read · Updated April 2026
UK New Build Premium Report Q1 2026
10,043 new build transactions analysed. County-by-county premium rankings.
01
The New Build Premium Landscape
Across 48 counties, 10,043 new build transactions were recorded in the past 12 months — representing 2.2% of all residential sales. But the premium buyers pay for new build over existing stock varies dramatically by location.
This report analyses the average new build premium at county level, revealing where developers can command the highest margins — and where new build stock is, surprisingly, selling at a discount to existing properties.
02
Highest New Build Premiums by County
| # | County | New Build Premium | New Build Sales | Median Price |
|---|---|---|---|---|
| 1 | County Durham | +76.0% | 215 | £128,500 |
| 2 | Swansea | +74.1% | 211 | £197,000 |
| 3 | Lancashire | +73.2% | 224 | £156,750 |
| 4 | Cardiff | +72.2% | 552 | £265,000 |
| 5 | Tyne And Wear | +65.5% | 234 | £149,438 |
| 6 | South Yorkshire | +48.3% | 254 | £164,924 |
| 7 | West Yorkshire | +47.4% | 348 | £188,750 |
| 8 | Greater Manchester | +45.0% | 620 | £213,500 |
| 9 | Somerset | +43.8% | 118 | £294,000 |
| 10 | Nottinghamshire | +42.9% | 284 | £210,000 |
| 11 | Derbyshire | +40.7% | 206 | £215,000 |
| 12 | East Riding Of Yorkshire | +40.3% | 132 | £196,500 |
| 13 | Suffolk | +40.2% | 189 | £286,000 |
| 14 | Staffordshire | +38.6% | 173 | £227,000 |
| 15 | Newport | +36.8% | 147 | £225,000 |
County Durham tops the table with an average new build premium of +76.0%. 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
| # | County | New Build Premium | New Build Sales | Median Price |
|---|---|---|---|---|
| 1 | Worcestershire | -38.7% | 94 | £290,000 |
| 2 | Surrey | -23.3% | 183 | £492,500 |
| 3 | Dorset | -22.8% | 46 | £336,500 |
| 4 | Hertfordshire | -13.1% | 117 | £443,550 |
| 5 | North Yorkshire | -9.7% | 130 | £280,000 |
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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Related
market reports.
County Durham Property Market: Prices, Trends & Development Finance (2026)
5 min readSwansea Property Market: Prices, Trends & Development Finance (2026)
5 min readLancashire Property Market: Prices, Trends & Development Finance (2026)
5 min readCardiff 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 10,043 new build transactions, the average county-level new build premium is +22.7%.
Where do new builds command the highest premiums?
County Durham has the highest average new build premium at +76.0%, based on 215 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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