Premium for new-build homes running between 5% and 10%

Research suggests the premium for new-build homes across the UK is running at between 5% and 10%, versus around 17% two years ago.

The RICS’ UK residential survey for June found a majority of respondents put the figure a little higher for London.

Asked whether the premium has changed over the past year the majority of contributors to the RICS’ poll reported no change overall at a national level, while a third took the view that the premium had narrowed in the capital.

“This is unsurprising, given the more challenging market conditions in the capital compared to the rest of the country,” the RICS said.

House price movements were “flatlining” at a national level, the RICS said, while regionally all parts of the country were showing house price growth except for London, the South-east and the east of England.

What RICS labelled a “stable trend” was expected to continue over the coming quarter, but price rises were being anticipated on a 12-month timescale.

Simon Rubinsohn, the RICS’ chief economist, said: “The latest data provides further evidence of the sales market settling down but I don’t get the impression from the insight provided by contributors that this is fuelling hope of a significantly more active market going forward.

“Many of the factors that have provided a challenge during the first half of the year remain unresolved.”