A Lancaster client recently asked me why the brand-new home she was considering cost noticeably more than a similar second-hand one nearby. It’s a great question—and one many buyers and investors in Lancaster and Morecambe have likely asked themselves too! 🤔
So, I decided to dig into the data and uncover the truth behind the ‘new build premium’.
💷 Why Do New Builds Cost More?
Some people love the fresh, modern feel of a new home. Others prefer the charm and character of a property that’s stood the test of time. But it turns out, this price gap is about more than just taste.
Since 1996, new build homes in Lancaster have consistently sold for more than second-hand homes—except for a short period between 2008 and 2013. Just look at this:
- 🏠 Between 1996–2008: New builds sold for £30,005 more than older homes
- 📉 Between 2008–2013: They sold for £6,540 less
- 📈 Since 2013: New builds have sold for £86,448 more on average
That’s a 36.6% premium over 29 years—and a whopping 60.9% over the last 10 years!
🛠 What’s Behind the Premium?
The ‘new build premium’ is the extra amount buyers pay for a newly constructed home compared to a similar second-hand one. Here’s why many find it worth it:
🔧 Low Maintenance – Everything’s new, from the kitchen to the boiler
🎨 Personalisation – Choose your fixtures, fittings, and layout
🛠 Builder Warranties – Peace of mind with a 10-year NHBC guarantee
💡 Energy Efficiency – Lower bills thanks to better insulation and modern design
With energy prices rising, those savings can really add up—especially in a home designed to be efficient from day one. 🌱
📊 The Numbers in Lancaster
The data shows that the premium varies by property type:
- Detached & semi-detached homes: Typically 10%–20% more
- Apartments: Often much higher premiums
But it’s not one-size-fits-all. Some second-hand homes are beautifully renovated. Some new builds may be overpriced. Every home—and buyer—is different.
📉 Boom vs. Bust: How the Market Impacts Value
Interestingly, the size of the premium changes with the property market:
📈 In a strong market: The premium rises, with buyers competing for new stock
📉 In a slower market: It shrinks, offering better deals for savvy buyers
This means timing can be everything. If you’re after a new home and watching your budget, buying in a quieter market could save you thousands 💰
🏘 Can You Really Compare Like-for-Like?
Unlike cars, comparing homes isn’t always simple. A new 3-bed detached house and a 1930s semi might be in the same postcode—but the lifestyle, build quality, and energy efficiency can vary hugely.
Also, for every new home sold in Lancaster, there are 5 to 7 second-hand ones changing hands. So a direct side-by-side comparison rarely exists.
The premium is a useful guide—but don’t forget to consider your needs, your budget, and what you value in a home 🫶
🤔 Final Thoughts
So, should you pay the new build premium in Lancaster?
✔ If you want a turnkey home, low bills, and minimal fuss—it could be worth every penny
💷 If value for money is your top priority, a second-hand home might be a better investment
🕰 And if you’re open to buying new, waiting for the right time could give you the best of both worlds!
What do you pefer? Old or new? If you want to talk about buying or selling in Lancaster or Morecambe, please get in touch. At JDG we love to help.
Thanks for reading
Michelle x
