Most buy-to-let investors purchase older property rather than new builds and that is generally because they are cheaper. With rental yields being an important part of a landlord’s business model, this makes sense.
Newly built property has a price premium and there is a big difference between the prices of old and new property. The cost of an average new build increased by twice that of older property between January 2021 and January 2022.
According to the latest Land Registry data, the average new build in January sold for £373,663, an annual rise of 20%. But the average price of an existing property was £268,481, an increase of 9% year-on-year.
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