The latest market analysis by Unlatch, the new homes sales progression and aftercare platform for developers and housebuilders, reveals that Great Britain’s new-build housing market is worth almost £3 billion in 2022 with two of its capital cities – London and Edinburgh – leading the way.

New-build sales records from the Land Registry show that there have been 7,591 new homes sold across Great Britain between January and May of this year.

With the average new-build house price now £384,424, this means the total market value of new homes sold across Britain sits at over £2.9 billion in 2022 so far.

On a city by city level, the most valuable new-build market is London where a high average price of £562,397 and a total sales volume of 533 homes in 2022 means the city’s market is worth £300 million.

Scotland – which has dominated the new-build market in recent times – is home to three of the most valuable markets in Britain, led by Edinburgh where 555 sales at an average price of £404,811 has created an overall market value of £225 million.

Lee Martin, Head of UK for Unlatch says: “The total value of new-build market sales so far this year may seem sizeable, but it’s fair to say that it’s really just the tip of the iceberg.

“We’ve seen a number of factors complicate the construction and development of new homes in recent years and while the pandemic proved challenging, the escalating cost of materials and the issues surrounding EWS1 forms have also played a part in the delivery and sale of many properties.

“It seems as though the impact of some of these issues remain as, so far this year, the sheer volume of new-build homes sold is actually down on an annual basis.

“However, this certainly doesn’t look set to be an ongoing issue and many big housebuilders have set their sights on quarter four to deliver some of their largest developments.

“Therefore, we can certainly expect a late flurry of sales over the coming months and it will be interesting to see just what the total value of new-build transaction hits come the end of the year.”

l MARKET analysis by specialist property lending experts, Octane Capital, reveals that the average homebuyer coming to the end of their mortgage term over the next year is set to see the cost of their monthly repayments climb by over £300 a month, despite having made three years worth of payments.

The UK property market was thrown into turmoil last week, with mortgage rates forecast to increase to as high as 6%, while many analysts have also predicted that house price growth will either stall, or even decline by as much as 5% over the coming months.

But what does this mean for the average homebuyer, or homeowner when it comes to securing or renewing a mortgage? The research shows that: -

Securing a mortgage as a new buyer

Based on the current average rate for a three year fixed term at a 75% loan to value, the average homebuyer purchasing in today’s market would be looking at a monthly repayment of £1,125, based on the average mortgage rate of 3.74% and the current average house price of £219,089.

Should the average mortgage rate climb to 6% in 2023 and house prices also dip by 5% to £208,134 as forecast, the average home buyer would be facing a monthly repayment of £1,341, £216 more than they would if they were purchasing a property in the current market.

However, if house prices remain stagnant at £129,089, an average rate of 6% would see a property purchase in 2023 require a £1,412 monthly repayment - £286 more per month than the current cost of borrowing.

Existing homeowners

For those approaching the end of a three year fixed term, the difference between remortgaging now and in 2023 could make a substantial difference to their monthly payments.

Back in August 2019, the average rate of 1.73% for a three year fixed term at a 75% loan to value, would have required the average homebuyer to repay £719 per month based on the average house price of £233,366 – £406 less than those looking to buying today.

While those currently approaching their renewal date in 2022 would have cleared over £17,000 from the sum owed on their mortgage, the current rate of 3.74% applied to the remaining £157,792 would still see them pay £810 per month – an increase of £91 on their original monthly repayment costs.

However, those who are due to renew on their three year fixed term come 2023 will be facing a far higher average monthly repayment of £1,043 per month.

This is a £298 increase on their previous monthly repayment costs, despite having cleared £11,521 off their original mortgage since August 2022.