Help To Buy New Builds Properties... Are prices really inflated?

AdrianC

numbercruncher8 said:

So for instance near me the asking price of a 3-year old new build is £475,000. The asking price of an older flat of similar sqft is £275,000. A premium of £200k for me makes the new build overpriced. 

3yo is not "newbuild". 3yo has lost the newbuild premium, largely because HtB is not available on it, but also because the "new-new-shiny-shiny" has gone off it, and somebody else has already used the toilet.

For there to be a 73% price difference between two non-new-build properties, there are going to be other factors in play.

FirstTimeSolo

New builds in my area in London are massively overpriced compared to similar properties built a few years ago. The over priced new builds sold a few years ago are now being re sold at a loss in many cases. 

AubreyMac

Surprised you got a discount in London but well done anyway. I want a new build (I'm a londoner too) but theres more interest that availability, many that i've enquired about have been off plan and mostly all sold!

Thing about checking sold prices on nethouseprices etc is that it never tells you how long the lease is - as this is a factor in pricing especially flats. 

MobileSaver

gagahouse said:

Houseprices.io - can take up to 2 months after completion for prices to update,

That's what I was leading up to; the only way the OP could know what everything else sold for was if their property was one of the very last to sell. As it turns out it wasn't just "one of" but the actual last one to sell.

RPF1992 said:

it may be simply due to it being the last property to sell

There's obviously a reason why all the others sold before this one and you have to ask yourself if it was the last one built would a developer make more of an effort getting the first property in a development just right or take more time with the last one? If it wasn't the last one built then why did everyone else choose all the other properties ahead of this one?

RelievedSheff

FirstTimeSolo said:

New builds in my area in London are massively overpriced compared to similar properties built a few years ago. The over priced new builds sold a few years ago are now being re sold at a loss in many cases. 

New builds in our area of the country are not over priced. 3 bed detached like ours on the new estate sell for between £210k and £240k. Older 3 bed detached properties nearby sell for between £190k-£240k so not a lot of difference and most seem to sell quickly. It is a popular area.

FirstTimeSolo

RelievedSheff said:

FirstTimeSolo said:

New builds in my area in London are massively overpriced compared to similar properties built a few years ago. The over priced new builds sold a few years ago are now being re sold at a loss in many cases. 

New builds in our area of the country are not over priced. 3 bed detached like ours on the new estate sell for between £210k and £240k. Older 3 bed detached properties nearby sell for between £190k-£240k so not a lot of difference and most seem to sell quickly. It is a popular area.

OP specified London. Where I am in London, 2 bed new build flat is normally over £475k. Similar 2 bed flat, a few years old is £375k ish. 

20SmthngSver

Help to Buy has pushed all houses up 20%, for everyone, regardless of if you're a first time buyer.

Builders are taking advantage of being able to push up the price by 20% because they know the government will cough up straight away on your behalf, it's guaranteed money, in addition to your deposit. Help to Buy has in one way made it harder because you now have to find more of a cash deposit for the higher price.

artyclarty

Up in the more affordable North East. In our our area they were selling new build 4 bed detatched £320k. 1st phase of the development all snatched up. 2nd phase sold through but not as quickly. The 3rd phase however they have reduced the prices down to between £275k and £280k and still can't shift them.

One of my colleagues bought in the 1st phase with a 95% mortgage and needs to now urgently relocate. Both local agents suggested a price of around the £225k with an eye to accept around the £210-20k mark, less if he wants a quick sale. So looks as if he is going to lose nearly 100k. Thats one hell of a new build premium!

Said colleague is also financed up to the eyeballs for all his furniture and brand new car. I really hope he has learnt his lesson that new and shiny does always mean it is the best value for money.

For context, 3 bed 60s-80s semis with a similar footprint in the same area cost between £80-130k or ex council £50-80k

20SmthngSver

@Artytarty That's very unusual, they usually put prices up 10% for no reason on additional phases, despite having bought the land years ago.