Buyers can find less expensive homes in new towns, says Halifax
New towns provide ‘attractive opportunities’ for first-time buyers, the bank and estate agent said.
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Your support makes all the difference.Home buyers could save nearly £50,000 on average by purchasing a property in a new town, compared with house prices generally, according to analysis.
The average house price in a new town is £300,656, compared with a UK average of £346,995, Halifax said.
Over the past three decades, the average price of a new town-located property has risen by 441%, slightly lagging behind the average for the whole of the UK, where prices are up by 454%.
Some new towns have seen property prices increase by significantly more.
Crawley in West Sussex tops the list, with property prices surging by 543% since 1994, from £63,712 to £409,836.
Craigavon in Northern Ireland was placed second, having seen the average house price increase by 524%, from £31,189 to £194,560.
With its “magic roundabout” and handy commuting distance to London, Hemel Hempstead in the South East of England has experienced a 520% jump in the average house price, from £70,502 to £436,986.
Home buyers will often find that properties in new towns are cheaper than the wider area, the research indicates.
The biggest percentage difference compared with the wider region was found in Peterlee, County Durham.
The average house price in Peterlee of £127,853 is 41% below that of the North East of England as a whole (£218,228).
Peterborough in Cambridgeshire was placed next, with properties costing 27% less on average than the East of England (£292,103 versus £402,248).
New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK
A major push for new towns followed the Second World War, driven by the need to rebuild and provide housing for those displaced by bombing and demolition programmes.
Halifax’s analysis includes areas built under the New Towns Act 1946 and subsequent legislation.
Amanda Bryden, head of Halifax Mortgages, said: “New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK.
“With the Government’s ambitious plan to build a new generation of new towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.
“It’s vital that a new towns policy prioritises affordability and sustainability.
“Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future.”
This research is based on data from the Halifax’s own housing statistics database. The prices used were averages for the 12 months to August in a given year.
– Here are the top 10 new towns for house price growth over the past 30 years, according to Halifax, with the average house price in 1994, the average in 2024 and the percentage increase:
1. Crawley, South East, £63,712, £409,836, 543%
2. Craigavon, Northern Ireland, £31,189, £194,560, 524%
3. Hemel Hempstead, South East, £70,502, £436,986, 520%
4. Northampton, East Midlands, £55,518, £337,421, 508%
5. Milton Keynes, South East, £69,464, £419,005, 503%
6. Corby, East Midlands, £46,465, £275,709, 493%
7. Basildon, South East, £56,024, £327,314, 484%
8. Stevenage, South East, £63,639, £364,132, 472%
9. Antrim, Northern Ireland, £39,482, £223,110, 465%
10. Peterborough, East of England, £51,838, £292,103, 463%
– And here are the top 10 new towns with the biggest discount to regional property price in 2024, according to Halifax, with the regional average house price followed by the new town average house price and the typical percentage “discount” for people buying in a new town:
1. Peterlee, North East, £218,228, £127,853, 41%
2. Peterborough, East of England, £402,248, £292,103, 27%
3. Skelmersdale, North West, £264,362, £193,095, 27%
4. Irvine, Scotland, £243,707, £178,322, 27%
5. Basildon, South East, £444,096, £327,314, 26%
6. Washington, North East, £218,228, £165,157, 24%
7. Runcorn, North West, £264,362, £203,658, 23%
8. Harlow, South East, £444,096, £345,248, 22%
9. Glenrothes, Scotland, £243,707, £194,691, 20%
10. Cumbernauld, Scotland, £243,707, £198,184, 19%
– And here are the top 10 new towns for the least expensive, first-time buyer, property price in 2024, according to Halifax, with the average price of a first-time buyer home and the typical percentage discount compared with the wider region:
1. Peterlee, North East, £108,256, 39%
2. Washington, North East, £119,625, 32%
3. Skelmersdale, North West, £146,527, 35%
4. Irvine, Scotland, £153,641, 22%
5. Cumbernauld, Scotland, £153,680, 22%
6. Glenrothes, Scotland, £167,563, 15%
7. Newton Aycliffe, North East, £167,965, 5%
8. Runcorn, North West, £172,483, 23%
9. East Kilbride, Scotland, £181,782, 8%
10. Derry/Londonderry, Northern Ireland, £183,670, 1%