LSL's Latest New Build Index

Our latest publication of the LSL New Build Index has been released.

In the year to the end of February 2015 the year on year growth in new build prices is 7.0% which is a slight fall on last month’s figure of 7.2% and, as reported last month, the regional growth compared to the slowing growth in Greater London is continuing.

Excluding Greater London, the average regional growth rate now stands at 4.7% against a figure of 0.9% for this time last year when some regions were showing negative growth and the overall picture was largely flat. Now all regions are showing growth over 2% with the highest performers being generally closest to Greater London.

It is likely, however, that the apparent slow down in the Greater London market will be, in part, due to the relative affordability of new homes which we are now able to monitor in our LSL Land & New Homes Affordability Index.

An index below 100 implies that property is more affordable with a below average proportion of income needed to service a mortgage. A figure above 100 implies that a greater than average proportion of income is needed to service a mortgage. It is clear that in regions such as the East Midlands, North East and Yorkshire and Humberside that affordability is more favourable but, as expected, it is those buyers in Greater London, East Anglia and the South East who may feel ‘the pinch’.

Click here to view the full New Build Index Report