Home buyers could save close to £50,000 on average by purchasing a property in a new town, compared with house prices generally, fresh analysis shows.

The average house price in a new town is £300,656, compared with a UK average of £346,995, Halifax said.

Over the past three decades, the average price of a new town-located property has increased by 441%, slightly behind behind the average for the whole of the UK, where prices are up by 454%.

Some new towns have seen property prices increase by significantly more.

Crawley in West Sussex tops the list, with property prices surging by 543% since 1994, from £63,712 to £409,836.

Craigavon in Northern Ireland is second and saw prices increase by 524% (£31,189 to £194,560).

Hemel Hempstead in the South East experienced a 520% increase (£70,502 to £436,986).

The government has announced ambitious plans to build 1.5 million homes in England over the next five years, with a modern generation of New Towns being an important part of its house-building agenda.

Halifax has analysed New Town house price trends over the last three decades to understand how these locations have performed compared to the wider market.

New Towns themselves are not a new concept. The idea of planned towns dates back to the early 20th century with the garden city movement.

The major push for New Towns came after World War II, driven by the need to rebuild and provide housing for those displaced by bombings and demolition programmes.

Over two million people now live in towns built as a result of the 1946 New Towns Act.

Over the last 10 years, New Towns have kept pace with national house price growth, recording a 68% increase compared to 69% for UK as a whole. However, in several New Towns, property prices have risen much more sharply over this period, with the top end of the list dominated by locations in Northern Ireland.

Antrim recorded the strongest growth in house prices of any New Town over the last decade, rising 118% from £102,439 to £223,110.

Derry/Londonderry follows, with house prices nearly doubling since 2014 (+99%, from £101,689 to £202,285).

Cwmbran in Wales comes next with property prices increasing by 88% (£134,540 to £253,392).

Table 1: Top 10 New Towns for property price growth over the last decade

Source: Halifax, 12 months to August

Amanda Bryden, head of Halifax Mortgages, said: “New Towns have played an important role over the years in helping to provide additional, affordable housing options across the UK. With the government’s ambitious plan to build a new generation of New Towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.

“It’s vital that a New Towns policy prioritises affordability and sustainability. Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future.”

Table 2: Top 10 New Towns for property price growth over the last three decades

Source: Halifax, 12 months to August

Today, in all but six New Towns, properties are typically being sold at a discount compared to the average price of the surrounding region.

Peterlee has the biggest gap, with its 2024 average house price of £127,853 being 41% below that of the North East as a whole (£218,228).

Peterborough comes next with properties costing 27% less than the East of England average (£292,103 vs £402,248).

Skelmersdale is also 27% below the average for the North West (£193,095 vs £264,362).

Table 3: Top 10 New Towns for biggest discount to regional property price in 2024

Source: Halifax, 12 months to August

Several New Towns rank well on affordability for first-time buyers looking to take their first step onto the property ladder.

Peterlee leads the way, with its average first-time buyer price of £108,256, the cheapest among all New Towns. This is also 39% lower than the average first-time buyer price in the North East as a whole.

Washington, also in the North East, has a typical first-time buyer home cost of £119,625 (32% less than the wider region).

Skelmersdale in the North West has an average first-time buyer price of £146,527 (35% cheaper than the average for the wider region).

Table 4: Top 10 New Towns for least expensive first-time buyer property price in 2024

Source: Halifax, 12 months to August

Reflecting on the Halifax research, Toby Leek, NAEA Propertymark president, commented: “One of the main drivers for a robust housing market is ensuring there is a diverse mixture of options available. With an ever-growing population, there must be consideration that certain regions are likely to need a precise provision of housing to ensure supply keeps pace with demand. Across the last 60 years, new towns have played an important role in delivering the magnitude of housing required.

“However, with the UK government’s first Budget only a matter of weeks away, housing will likely form an important subject for inclusion. Today’s figures show that there is strong growth potential in all corners of the UK and across the long term which is likely to remain the case. However, the sector remains keen to see full details regarding the pledge of one and a half million new homes by the end of this parliament.”

Via @PropertyIndustryEye