new build houses - do they appreciate at a slower rate?

[RanToTheHills]

may be buying a new build house - very large 5 bed, high spec, good garden etc but also pricey so wondering -in general terms - how much it'd be likely to appreciate as opposed to a period house (which is what we've always gone for before). Any thoughts? TIA!

depends entirely on the area

Thing about period houses is they're often few in number (in a particular area) hence demand for them is always high and they always command top whack.

There are more likely to be lots of similar newbuilds on the market at once hence they command less high prices and, if more new developments are built, 5yo 'newish' build houses will have severe competition from spanky new offplan houses as well as period properties.

Check out the Local Plan in your area to see what developments are planned for next 5-10 yrs.

I've just bought new on a small plot of 5 houses on outskirts of a village. My neighbour bought his for £175,000 in January 2006 and has just sold for £235,000.

Dunno if that is any help to you.

Thanks both! And at yrlucky neighbour,moon!
it's brand-new to be purchased from developer, more £than I'd expected to spend esp as it's not period but it's large and there are so few of that size here, new or otherwise.

oh and it's similar in size to yours, themoon so guess that helps keep the value.

as in the development - there are 7 in total and that's it.

aha, 'so few of that size'

so, newbuild or not, it could command a premium by having 5 beds when few others do, assuming there is a continued demand for such large houses.

TBH I've always found it better to buy a house that we can afford and suits our needs than to worry about it as an investment - in fact, we paid slightly over the market value for our current house, but it was the right house for us in the right place at the right time, and that was worth the few £k extra.

yes, IKWYM, MrsB - it is, I think, what we want, though am not yet 100%. Bigger than expected though,which is a bonus but not a necessity, it's mainly that it's available and there's little else, tbh!

bump-any more views?

Depends on the development too, if it is ongoing, ro similar appear locally, it will take a while or a price cut to resell until they have also sold and there is always the risk that they will build further properties your size. On the whole if it is well balanced and designed (ie. enough living acommodation and bathrooms for bedrooms, spacious but low maintenance garden )then you should be ok long term but you do pay a premium for new and second hand buyers may well not appreciate the gadgets and fixtures in the same way as you.

it's not on=going. Nothing planned of similar level, in fact nothing planned at all. Anyideas what premium is typically? say 2% or something?

Probably depends on house, development, area. Our new build estate has approx 80 house with about 8 of each design.They are between 6months-18monthsold and the ones onthe market already are going for between 8%- 20% what they cost the first buyer.

My gut feeling is that they don't appreciate as well as period properties which tend to have larger rooms, higher ceilings, bigger plots and all the features that people often like.

It does depend where it is though - the new builds around ds1's school still attract a serious premium because of the school.

I htink as everone else has said it depends on hte area you are looking at.

We have a 4 bedroom in a close with 5 houses, they were built in 1999 and sold for around £100k one was sold last year for around £220k.

i would also add that dh bought a 2 bedroom house about half mile away for £52k in 1999 which has sold recently for £152k.

I have to say when we bought this house in 2002 (£160k) we bought to live in until we retire and down size.

i suppose i just want to know in general terms- well laid out, good-sized gardens, local materials, 3bathrooms etc. They are in a v good location and availalbe but tbh my dream is a period house. We therefore hope to make something on it,hence my question, as would probably plan to sell in 2-4years. It's because there's such a dire shortage in this location that we're going for a new build

if there is such a dire shortage, then it is bound to be a good investment. doesn't that follow?

i hope, I'm thinking compared to buying a (smaller) period house. Problem is only ones here generally available are tiny cottages.

Its about the local market and demand though. If the majority are on wages which only enable them to afford the smaller cottages then demand for a 5 bed executive in that area could be limited. Whereas in a more generally affluent area it could fall within the aspirational reach of a larger proportion of the population. From what I've seen around here the larger detached properties, of varying ages, can be much harder to fix value on and there is a surfeit in a particular price bracket as a result.

it's quite an affluent market here as tons of commuters so larger houses are sought after, but much more so if period.
I prefer period but it depends hugely on the individual house, I like this one in spite of it being new.