A new analysis by Halifax has shown that house prices in New Towns have kept pace with national trends over the past decade, while offering homes that are on average 15% cheaper than across the UK.
Strong growth in New Towns over the last decade
Halifax’s research highlights that, over the last ten years, property prices in New Towns have risen by 68%, nearly matching the UK average of 69%. Some areas have experienced far greater growth, particularly in Northern Ireland. Antrim leads the way with a 118% increase, followed by Derry/Londonderry (+99%) and Cwmbran in Wales (+88%).
Amanda Bryden, Head of Halifax Mortgages, commented: “New Towns have played an important role in providing affordable housing across the UK. Our research shows that these towns not only offer significant price growth potential but also present attractive opportunities for first-time buyers.”
New Towns provide better value for money
New Towns remain an attractive option for buyers looking for more affordable housing. In most of these towns, property prices are significantly lower than the regional average. For instance, Peterlee offers a 41% discount compared to the North East, while Peterborough and Skelmersdale both offer a 27% discount in their respective regions.
A history of growth and the future of New Towns
Over the past 30 years, New Town properties have seen a 441% increase in value, slightly behind the UK’s overall rise of 454%. Crawley in the South East tops the list with a 543% increase in property prices since 1994, followed by Craigavon in Northern Ireland (+524%) and Hemel Hempstead (+520%).
Toby Leek, NAEA Propertymark President, commented: “New Towns have been vital in meeting housing demand for the last 60 years. With the government pledging 1.5 million new homes by the end of this parliament, New Towns will remain central to addressing the housing shortage.”
As the UK government prepares to deliver on its ambitious house-building targets, New Towns continue to offer affordable housing options with strong long-term growth potential. The emphasis on affordability, sustainability, and infrastructure in these areas will be crucial to supporting both current and future homeowners and landlords.
