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House prices in new towns are around £50,000 cheaper on average than the rest of the UK, with houses in Peterlee are 41% cheaper than any other town in the North East.
The average house price in a new town – settlements largely built in the decades following the Second World War – is £300,656, compared with a UK average of £346,995, Halifax said.
Halifax figures showed that in all but six new towns properties are typically being sold at a discount compared to the average price of the surrounding region.
Peterlee has the biggest gap, with its 2024 average house price of £127,853 being 41% below that of the North East as a whole (£218,228).
Peterborough in the East of England comes next with properties costing 27% less than the regional average (£292,103 vs £402,248), while Skelmersdale is also 27% below the average for the North West (£193,095 vs £264,362).
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Overall, homes in new towns are approximately 15% cheaper than the UK average.
Amanda Bryden, head of Halifax Mortgages, said: “New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK.
“With the government’s ambitious plan to build a new generation of new towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.
“It’s vital that a new towns policy prioritises affordability and sustainability. Placing social and affordable housing options, energy-efficient buildings, green spaces, and accessible public transport at their core would give a clear signal to both investors and developers that these vibrant communities will not only address the current housing shortage, but also contribute to a more sustainable future.”
Over the past three decades, the average price of a new town property has risen by 441%, slightly lagging the average for the whole of the UK, where prices are up by 454%. However, some new towns have seen property prices increase by much more.
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Crawley in the South East tops the list, with property prices rising by 543% since 1994, from £63,712 to £409,836.
Craigavon in Northern Ireland is second and saw prices increase by 524% (£31,189 to £194,560), while Hemel Hempstead in the South East experienced a 520% increase (£70,502 to £436,986).
The government has announced plans to build 1.5 million homes in England over the next five years, including new towns.
A major push for new towns followed the Second World War, driven by the need to rebuild and provide housing for those displaced by bombing and demolition programmes.
Halifax’s analysis includes areas built under the New Towns Act 1946 and subsequent legislation.
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