New Build Mortgage Guide

New-build premium checker

No lender or portal shows you this directly: what you're actually paying per square metre for a new-build, next to what similar second-hand homes nearby are selling for. A premium is normal — this gives you the number as context, and flags when it's the kind of figure a valuer might not support.

This is an information tool, not advice: it doesn't give a recommendation, a valuation, or a guarantee any lender will lend to you.

Worked example: £320,000 house, 75 sqm, £3,600/sqm second-hand comparable

A 75 sqm new-build house priced at £320,000, next to second-hand homes locally selling at roughly £3,600 per square metre.

That's £4,267/sqm for the new-build — a 18.5% premium over the comparable, or £50,000 more than the floor area would cost at second-hand rates. That falls in our "high" band.

This is on the high side for a new-build premium. It's still normal — new-build pricing reflects the developer's own comparables, not just resale stock — but it raises the chance a valuer's figure comes in below the agreed price. Worth checking against /down-valuation-calculator before you commit.

Change the inputs below to model your own numbers.

A smaller, lower-premium flat for contrast

A 60 sqm new-build flat priced at £250,000, against a £4,000/sqm second-hand comparable.

Here the new-build works out at £4,167/sqm — only a 4.2% premium, landing in the "low"band. Same tool, very different risk profile — the size of the premium is what drives down-valuation risk, not whether it's a house or a flat.

Change the inputs below to model your own numbers.

Between £50,000 and £5,000,000.

On the floor plan, the EPC certificate, or the listing — usually given in sqm.

We don't fetch this for you — find it yourself from a couple of similar, nearby, recently-sold second-hand homes. Rightmove's "sold prices" search shows sold £ and (on the listing or EPC register at find-energy-certificate.service.gov.uk) the floor area — divide one by the other for a couple of comparables and average them.

FAQ

Is a new-build premium a bad sign?

Not on its own — new-build homes routinely sell for more than equivalent second-hand stock because of the warranty, energy efficiency and no onward chain. A typical premium (roughly 5-15%) is normal. It matters most as a leading indicator of down-valuation risk: the higher it runs, the more likely a mortgage valuer's figure comes in below what you've agreed to pay.

Where do I get a fair comparable £/sqm?

Use Rightmove or Zoopla sold-price data for genuinely second-hand homes (not other new-build plots on the same development) within roughly half a mile, adjusted for condition and finish. We deliberately don't auto-fetch this figure — sourcing your own comparable is what makes the number meaningful.

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