The UK property market is thriving, with increasing numbers of properties being built each year and plans in place for one million new homes to be built by 2020. New builds make up a large number of properties  available to investors, which is why it’s important to get clued up if you’re interested in investing in UK property. We’ve put together a guide with some of the key facts about new build properties that you should know.

New builds in numbers

New properties are being built in the UK every year, with the construction of new homes reaching a 10 year high as of 2018. Plans are in place for UK builders to begin construction on 160,606 new homes, bringing the number up by 6% since 2016. Research shows that the total number of new homes being built around the country has risen by 25% between 2014 and 2015. In the period of June 2017 to June 2018, a total of 161,240 new build dwellings (a house, flat, bungalow or maisonette) were completed in the UK.

Construction of New Builds in the UK In Numbers Infographic

It is clear that the UK government is responding to demands for new property, striving to supply the country with the number of new homes needed. £8 billion has been invested into building 400,000 more affordable homes for people to buy and rent. The Council of Mortgage Lenders presents findings showing that there are now more first time buyers in England when compared to numbers in 2007, with a total of 72,800 throughout the second quarter of 2016.

The areas of the country where the highest amount of properties are being built varies. Sadiq Khan, the Mayor of London, has proposed the development of 65,000 new homes a year in the city. Whilst this leaves a lot of options for investors to choose from, figures show that London isn’t the best city to invest in, with high property prices of around £484,173 on average, a 1.12% decrease in rental price growth, and low average rental yields of 3.05%.

Other cities in the UK have plans in place for new build properties, with the Northern Powerhouse receiving £8.9 million worth of investments to help build new housing. In Manchester, a major UK property hotspot, up to 10,000 new build apartments are either planned or currently being built in the city centre, appealing to the cities growing population of young professionals.

The appeal of new builds 

New build properties are appealing both to those interested in investing and interested in renting. One way that new build properties are more appealing than period properties is in the convenience. A new build residential apartment, for instance, is likely to need fewer repairs and maintenance than buildings that were built long ago.

New Build Properties

Young professionals make up the majority of the target market for residential apartments. Young professionals are keen to rent high-quality, city centre-based apartments that are close to their workplace and the city’s major attractions. This type of tenant is likely to be busy and keen to spend time socialising and enjoying the city, which may make them more keen to rent an apartment that doesn’t need any maintenance of redecoration.

New build properties are often designed and created with stylish decor and high-end features and fittings. Pair this with the fact that the majority of new build properties are constructed in a popular area with a lot of growth potential, and it’s easy to see why new builds can be the more attractive choice for tenants and investors.

New build developments are known to be a lot cheaper to run than older buildings, which is another reason for their popularity. An owner of a new build property is said to save around £624 a year and £52 a month on energy bills. Unlike a low 2% for older buildings, over 96% of newly built properties boast an A-C grade energy efficiency rating.

Rise In Number Of People Living In Liverpool City Centre Infographic Banner

New build property investments

More and more new properties are being built around the UK, making now a great time to get on board with new build property investment. The most lucrative type of property to invest in is an apartment, with figures showing a rise in value. The value of the average UK apartment has grown by £1,251 a month over the last five years, having increased by around £75,074 over this period.

Before investing in new build property, it can be a good idea to research the best areas for property investment. The UK’s property investment hotspots of 2018, Liverpool and Manchester, are a perfect choice for those investing in new builds.

New properties are being built all the time in Liverpool and Manchester, catering to the increasing demand and growing populations of the cities. Manchester, for example, has grown at a speed that’s three times the national average, whilst the number of people living in Liverpool city centre rose to 29,060 in 2017 up from just 15,271 in the previous year.

Here at RW Invest, we offer some of the most lucrative and promising new build properties in Liverpool and Manchester. All of our new builds are developed to the highest standard and available with stylish furnishings, ready for your tenants to enjoy. Better yet, we offer some of the most affordable prices and attractive rental yields, from as low as £45,450 with an 8% net rental return in our Hamilton Hub student property, and £112,500 with a 9% NET Yield Guaranteed for two years in our Manchester Caxton Hall apartments.

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