DO NEW BUILDS HOLD THEIR VALUE?
At a glance
- New builds can go up in value over time, though some may dip slightly just after purchase
- Many types of new builds often rise in price faster than older homes, especially in good locations
- Value can drop if there are too many similar homes for sale or if the build quality is poor
- Simple upgrades like better kitchens, nicer bathrooms, and garden improvements can help boost value
There’s a lot to love about a brand-new home: Modern fixtures, stylish interiors, bright, open spaces, excellent energy efficiency, and the kind of peace of mind that comes from knowing you won’t be dealing with sudden repairs. It’s no wonder new builds are so tempting.
But whether you’re buying to live in or looking to invest, one question keeps popping up – do new builds hold their value in the UK?
At Wain Homes, we’ve helped buyers navigate the new-build market for years, and the short answer is: it depends. Factors like the type of new build, its location, and how it’s managed over time all play a big role. Today, we’ll take a closer look at the data and see whether new builds really do hold their value in today’s market.
The value of new builds
From gorgeous contemporary flats to spacious family homes, new builds can hold their value in different ways. Let’s explore the performance of different new-build homes across the UK.
New build homes
New-build homes are proving their worth across the UK, often outpacing resale properties. Take Wales, for example: in February 2025, the average new-build home sold for £377,000, up a huge 26.5% from the year before, while resales barely nudged 3.4%. March’s provisional figures suggest an even sharper rise to £385,000 and 26.5% growth – though these come with higher uncertainty due to fewer transactions.
Across the UK, the story is similar. The average new-build home now costs around £381,000, up 17.1% compared with the previous year, while existing homes have only grown by 3.7%, averaging £261,959.
Overall, new builds, particularly detached homes, are standing out, performing better than resale stock and keeping value even when the market takes a pause.
New build flats
New-build flats are enjoying a strong year. According to data collected by Halifax, values for new-build flats have jumped 6.7% over the past year, surprisingly outpacing new-build detached, semi-detached, and terraced homes.
Buyers are also paying a noticeable premium for them – on average around £71,800 more than similar resale flats. That’s a strong sign that, in the right locations, a new-build flat can hold its value just as well, if not better, than other property types.
Luxury New Builds
Luxury developments, typically high-spec detached houses or premium flats in prime city locations, tend to hold up well – even when the market wobbles.
For example, data from Savills shows that prices for prime regional properties, a good guide for luxury detached homes outside London, only dipped around 2% in the first half of 2025 and were down about 3% compared with the previous year. Similarly, the Knight Frank Prime Country House Index reported only very small falls of 0.3% at the end of 2024, and just under 1% over the whole year.
These small changes, especially in high-quality new-build luxury homes, suggest that the very best properties, in the best locations, are holding their value better than the wider prime market.
The buyer pool for luxury homes is smaller, which can mean slightly longer resale times, but the limited supply of premium properties in sought-after areas helps keep values strong.
Affordable housing and shared ownership
Affordable housing, particularly shared ownership, has seen strong long-term growth. Between 2009 and March 2024, the average value of a shared ownership property rose from £164,600 to £313,100 – a 90% increase, outpacing the broader market’s 83% growth over the same period.
Supply is keeping pace too, with over 20,000 shared ownership homes delivered in both 2022-23 and 2023-24, almost all brand-new properties. Regular delivery of new homes keeps the market healthy and predictable, showing that developers and local authorities are on top of demand and helping maintain stable prices.
With consistent delivery and shared ownership schemes, new-build homes remain popular and appealing to a wide range of buyers.
Eco-Homes and modular builds
Sustainable, energy-efficient homes are showing strong staying power in the market. Knight Frank research finds that net-zero carbon new builds can attract a 3.8% price premium, while Santander reports some high-efficiency homes sold for 15.5% more – with over a third achieving premiums above 20%.
Rightmove’s 2024 Green Homes Report found that eco-friendly new builds with top EPC ratings (A or B) sold for around 15% more on average than similar homes with lower ratings (EPC D) – though the exact increase can vary depending on the type of property and its location.
Data from Oxford Economics confirms this trend, with results showing:
- A or B-rated homes sell for around 3.4% more than Band D properties.
- C-rated homes see a small premium of 0.5%.
- F or G-rated homes can sell for 7.4% less.
Modern modular homes are also showing strong value retention, proving that long-term performance isn’t limited to traditional builds.
Do new builds go up in value or lose value over time?
It’s common for new builds to come with a new build premium, which can mean a small dip in value shortly after moving in – similar to buying a new car.
The good news? Most homes regain value over time, especially as the neighbourhood grows and the amenities around it flourish. Reports from homeowners show increases of tens of thousands of pounds over a few years, particularly when the area becomes desirable or the property is well-maintained.
While there can be minor short-term changes, new builds typically hold and grow in value, ideal for homeowners looking to put down roots and enjoy their space. That said, a new build’s value can be affected by oversupply, lower-quality construction, or a developer with a weaker track record – so it pays to do your homework before buying.
New builds vs older homes – depreciation and value trends
When it comes to new builds and older homes, there’s no one-size-fits-all answer – both have their perks. New builds offer modern layouts, energy-efficient features, and lower maintenance in the early years, often backed by helpful warranties that keep surprises to a minimum.
Older homes often bring character, larger outdoor spaces, and the kind of quirks and charm that make them feel truly lived-in. In many areas, both types can grow in value over time – older homes benefit from scarcity, while new builds appeal to buyers looking for modern, hassle-free living.
How to add value to a new build
Even though new builds come ready to move into, there are smart ways to boost both comfort and value:
- Kitchen upgrades: Swap in high-quality fixtures, clever storage, or energy-efficient appliances to make the heart of your home even more appealing
- Bathroom upgrades: Stylish taps, better lighting, or other modern touches can give this space a real boost. For more bathroom upgrade ideas, take a look at our guide.
- Landscaping: Simple garden improvements, like planting shrubs, adding a patio, or enhancing lighting, create instant kerb appeal. Read more in our guide Clever ways to make the most out of your new build garden
- Smart storage solutions: Built-in shelving, clever closets, or under-stair storage help maximise space without major renovations.
- Protect your warranty: Make sure any improvements keep your builder’s warranty intact, so you enjoy upgrades without losing peace of mind.
So, do new builds hold their value? It’s not a simple yes or no – it all comes down to the property type, where it’s located, the quality of the build, and how long you plan to make it your home. Wider market factors, like interest rates and whether it’s a buyer’s or seller’s market, can affect short-term value changes.
Dreaming of a new-build that lasts? At Wain, we craft homes designed to hold their value, with thoughtful design, style, and quality you can trust. Explore our latest developments now and get in touch with us to start your journey to finding your perfect home.
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