Why Peterlee in County Durham is the UK's cheapest new town

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.

Home buyers could save nearly £50,000 on average by purchasing a property in a new town, compared with house prices generally, the research also revealed.

Halifax said the average house price in a new town is £300,656, compared with a UK average of £346,995.

Cabinet will be asked to approve the proposed new measures next week, which would also see new Customer Access Points at Newton Aycliffe and Peterlee.

This will allow us to provide face-to-face customer services in more parts of the county.

— Durham County Council (@DurhamCouncil) October 9, 2024

Over the past three decades, the average price of a new town-located property has risen by 441%, slightly lagging behind the average for the whole of the UK, where prices are up by 454%.

Some new towns have seen property prices increase by significantly more, such as Crawley in West Sussex, with property prices surging by 543% since 1994, from £63,712 to £409,836.

UK's cheapest new town revealed in the North East

But contrastingly, where in the North East is the UK’s most affordable new town?

Peterlee landed the number one spot in the top 10 new towns with the biggest discount to regional property price in 2024, according to Halifax.

With a population of around 23,000, Peterlee’s average house price was found to be £127,853, compared to the regional (North East) average house price of £218,228.

Peterlee was also found to have a 41% typical “discount” for people buying in a new town.

Additionally, it was also the new town that was the least expensive for first-time buyers in 2024.

Peterlee had an average price for a first-time buyer home of £108,256 with a 39% typical “discount” compared with the wider region.

Halifax’s analysis includes areas built under the New Towns Act 1946 and subsequent legislation.

This research is based on data from Halifax’s own housing statistics database and the prices used were averages for the 12 months to August in a given year.

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Amanda Bryden, head of Halifax Mortgages commented: “New towns have played an important role over the years in helping to provide additional, affordable housing options across the UK.

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“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 town's 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.”