Leeds is best place to build homes

Ryan Bembridge

September 11, 2017

Leeds is the best location to build new homes in terms of value, house price growth, planning success and demand, research from mezzanine finance lender Argyll Property Partners has found.

New builds are worth 41% more than existing homes in the city, while the value of new builds are increasing by 13% year-on-year.

Other good areas for new builds are Birmingham, Cornwall, County Durham and Wiltshire.

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Brian Markovitz, director of Argyll Property Partners, said: “Developers should head to Leeds if they’re looking to build homes in England.

“Property values for new builds in the city are seeing double-digit growth as increasing employment drives demand for homes.

“The significant gap in the price of new homes compared to existing properties means there are healthy profits to be made, while the high transaction figures suggest homes should be relatively easy to buy and sell.

“Leeds City Council is also one of the best for encouraging house building, approving almost all of the major applications it receives.

“Major new developments such as the Seacroft site in the east of the city suggest many are already discovering the opportunities Leeds has to offer for house builders.”

Surrey Heath in South East England is the least attractive local authority to build new homes according to Argyll’s analysis.

High property values in Surrey mean that developers will have to pay a premium price to secure a site compared to other areas of the country.

And once completed the homes are typically worth 23% less than existing properties in the area.

Meanwhile transactions in the area are 50% lower than the national average.

Other poor areas are Hambleton, Epson and Ewell, Ribble Valley and Richmondshire.

Brian Markovitz, director of Argyll Property Partners, said: “For developers, Surrey Heath doesn’t appear to be the best location for new builds.

“The higher land values in the area mean that profit margins will be squeezed.

“Despite Surrey Heath’s proximity to London, the large amount of Green Belt land in the area means home sales are also significantly lower than the average for a local authority.

“Renovating an existing home may yield better returns for anyone looking to invest in Surrey Heath.

“It’s also noticeable that two London boroughs feature close to the bottom as stamp duty, high land values and a decline in transactions combine to hamper Prime Central London’s attractiveness to developers.”

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