The average house price in the UK is currently £500k and you could be out of pocket by building a cheaper, more efficient, more modern home in the country.
That’s according to a new report from Landmark Homes.
In a recent survey, Landmark Homefounding, the property consultancy, found that in 2018 there were 1,828,500 new homes being built in England and Wales, with more than a quarter of those being for the lowest price tag of £500.
As part of its latest research, the consultancy asked 5,000 people in England about their top three reasons for buying a home and found that, on average, the most common reason for purchasing a home was ‘saving for a down payment’ and ‘saving on mortgage repayments’.
In fact, the majority of respondents had a home-savings account.
The report found that the average mortgage repayment for a typical owner-occupier is £100,000 and the average home price in England is now £500 per sqft.
However, while most people are saving for a downsizing, there are still plenty of people in the market for a bigger house.
In 2018, the average UK household had £1,400 more in assets than they needed to live on, according to the latest ONS figures, with a further £700 per household being on the increase.
There are also more than one million new properties being built each year and Landmark’s data shows that the biggest single market for new homes is the Greater Manchester area, with around 40,000 new homes approved in the past year.
The biggest market for buyers is the North West, with almost 10,000 houses being built there, followed by the South East, East Midlands and the West Midlands, according the report.
However you can’t really buy a house in the North East for less money than a traditional property in London.
There is a £1.5bn housing shortage in the area, according Landmark.
The average price for a property in the Greater London area is now around £3.2m.
There is a shortage of properties in the City of London and a shortage in places like South Kensington and Belgravia, the report said.
“The affordability crisis in the north of England is compounded by the lack of supply in the South of England, which means that new properties in this region are typically priced at £5m-£7m, far below the £6m-7m price mark in the London area.”
Landmark Homefinding’s survey also found that over one third of all properties in England are on the market in the first quarter of 2019, and that is a rise of nearly 50 per cent since last year.
In 2018, there were 4.9 million homes in England, a rise from 4.4 million in 2017.
According to Landmark, there is a real risk that this new home market is about to see a major price surge in the coming months.
In the UK, the number of homes for sale in the capital is up more than 70 per cent in the last year, with prices climbing at a rate of 17 per cent a year.