Leeds tops list for new build developers says Argyll Property Partners

by: Edward Murray
  • 19/09/2017
  • 0
Leeds tops list for new build developers says Argyll Property Partners
Leeds has come out on top as the best place to build new homes, according to research from Argyll Property Partners. Surrey Heath is at the bottom of the rankings.

The specialist commercial lender ranked local authorities after assessing factors including: new build values, planning approvals and the number of property sales.

95% of or major residential planning applications are granted in Leeds. The figure was the same in Manchester, while Birmingham was higher at 96% and Liverpool topped the list at 97%.

In Leeds, the research found that new build property prices had risen by 13% year-on-year. New build values were 41% higher, on average, than the value of existing properties. The city also sees almost four times (380%) the number of monthly transactions, compared to the national average for England.

The combination of these findings put Leeds on top and Brian Markovitz, director of Argyll Property Partners, said: “Developers should head to Leeds if they’re looking to build homes in England.”

He added: “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.”

But not all local authorities offer such attractive opportunities according to the research.

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

The high property values in Surrey mean that developers have to pay a premium to secure a site, compared to other areas of the country. Once complete, new homes in Surrey Heath are usually worth 23% less than existing properties in the area. Homes in the rural area may also be harder to buy and sell, with monthly transactions in the area 50% lower than the nationwide average.

Markovitz, 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.”

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