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Key Factors That Affect The Price Of New Homes
New homes are being constructed fast: last year some 156,140 new homes were planned, the highest number of homes planned for a single year since 2007. When it comes to valuing these new builds, there are lots of different factors than can affect how much new homes will be put on the market for. Check out these 5 key factors that affect the price of new homes.
Market conditions
In 2015, the average price of a UK home nearly hit £200,000 for the first time in history. Many people agree that the UK housing market is out of control and that many younger people might not be able to afford to buy their own home because house prices are rising much more quickly than wages. The market has made people less likely to want to buy a home because it’s just so expensive. Because of this, new homes are likely to be offered at more realistic prices to attract, not repel, potential buyers.
Location
A new home’s location can dramatically affect its price. If it’s been built in an area with a good reputation, transport links and many facilities close by and there are lots of high-value properties in the immediate area, the house price will likely be similar to the price of nearby properties. If, on the other hand, the house is in a less desirable area, transport links aren’t so good and there’s not much to do in the local area, this can cause the price to fall. If a new home is in the catchment area of a local school, this can add to its price.
Presentation
The better the presentation of the new home, the more money it will likely sell for. An immaculate home that is well presented and looks brand new will sell for a lot more than a new build that doesn’t look appealing to potential buyers. That’s why construction companies invest in interior designers to give their houses the wow factor.
Construction
One of the key factors to the cost of new homes is of course the construction. There is a lot of variables here with different size properties being built and different materials being used.
There are companies out there trying to reduce the costs when constructing new homes. For example if we look at fitting gas pipes into a new home a fairly new type of piping can be used called TracPipe, which will greatly reduce the cost of installation and waste of materials. The savings from this can then be passed onto consumers.
Features
The more features a new home house, the more it will be expected to sell for. Things like a garden, a garage, an attic, lots of storage space, spacious rooms, a modern kitchen and enough bedrooms for everyone in the family can add a lot of money to the price of a house because these are things that potential buyers desire.
So as you can see there’s a lot that can influence just how much a new home will be sold for. There are many other factors that can affect a new home’s price, but these are just some of the general ones that will affect all new builds to some degree.
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