North West Ranks Above London for New-Builds Delivered

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Research Reveals the Top Places for New-Build Delivery in the UK

In light of the government’s recent commitment outlined in last week’s Spring Budget to provide 8,000 new properties throughout London, a recent study conducted by property development expert APRAO has scrutinised government data, examining the historical delivery of new housing over the past five years across England’s regions and ten major cities.

The aim was to identify which property market segments have consistently witnessed the highest rate of new home construction based on average annual delivery rates.

For buy-to-let investors, cities with a healthy amount of new-build properties give them the best opportunity to capitalise on tenant demand. With supply improving but still subdued, these new-build properties can potentially lead to strong rental yields – particularly in up-and-coming areas – and also boast numerous other benefits.

Let’s examine the research results and see what they could mean for buy-to-let property investment.

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What Did the Research Say About New Build Delivery in the UK?

According to the research, the nationwide average stands at 168,930 new homes built per year.

Jeremy Hunt’s announcement during last week’s Spring Budget revealed a £242 million government investment in two regeneration projects in London, potentially yielding nearly 8,000 new dwellings in the capital, which may boost the London buy-to-let market. However, recent reports suggest an oversupply of rental properties in the capital, leading to a slight decline in rental prices.

Despite London’s prominent position in the Spring Budget’s housing supply agenda, APRAO’s research indicates that the capital doesn’t claim the top spot in historical new-build delivery.

Surprisingly, the South East leads with an average of 30,818 new homes built annually over the last five years. The East of England follows closely with the second-highest level of new-build delivery, averaging 21,068 homes annually.

There’s also some good news for property investment in the North West. The region outpaces London, with an average of 20,656 new homes delivered yearly. This is another piece of good news for the region regarding property investment. A recent Savills Cross-Sector Report earmarked the North West buy-to-let to see some of the highest returns in the country at 9.2%. If you’re wondering what to invest in right now in the UK, you may want to consider cities like Liverpool or Manchester.

Find Out More: Do you want to learn more about investing in property in the UK? Check out our guide on the safest investments.

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Why Should Investors Consider New-Build Investments?

As aforementioned, Investing in new-build properties in the UK offers several advantages.

Firstly, they often come with modern amenities and energy-efficient features, both appealing to people looking to save money on their energy bills and maintenance costs. New builds also typically adhere to the latest building regulations, providing a higher standard of safety and quality for the tenant.

Moreover, they may attract higher rental yields and resale values due to their desirable features, appealing location, and brand-new condition. Additionally, developers may offer incentives or warranties, providing investors with peace of mind. Similarly, new-build homes can be bought off-plan, which involves purchasing the property at a discount before construction is complete.

In short, investing in new-build properties presents an opportunity for capital appreciation and enhanced rental yields in the UK market.

If you want to educate yourself further on new-build investment, consider reading our article on the risks of off-plan property investing.

Our buy-to-let area guides are a must-read resource for investors who want to learn about a city’s buy-to-let prospects:

North West Ranks Above London for New-Builds Delivered