It now costs over twice as much to buy a property than to build one, new research from Searchland reveals.

Analysis from the development site sourcing specialists compared basic building costs in terms of labour and materials to new build prices.

It found that typical new builds cost £198,000 to construct and £436,000 to buy – a difference of £238,000 or 120.1% more.

The South East has the biggest gap, where it costs £219,000 to build a property and an average of £533,000 to buy a new build – a difference of 142.9%.

This is despite the region having higher than average construction costs of £210 per square feet.

It’s a similar story in London, where it costs £251,000 to build a home compared to a new build average price of £608,000, a difference of 142.5%.

The capital has the highest construction cost of £240 per square feet, but Searchland says property prices in the capital are much higher than much of the rest of England.

Other areas with a big gap between the cost of construction and average house price are the South West (138.8%) and the East of England (132.8%).

In the North East there’s a difference of only 57.8% between the cost of constructing a new build (£177,497) and the typical new build price of £280,012.

There’s similarly just a 71.3% gap in Yorkshire and the Humber, and a 76.0% divide in the North West.

These regions are also cheaper than most in terms of construction cost per square foot, with Yorkshire and the Humber and the North East coming to £170, and the North West costing a little more at £180.

Other areas with a big gap between the cost of construction and a house price are the South West (138.8%) and the East of England (132.8%).

Searchland co-founder and chief executive Mitchell Fasanya says: “The wide gap between the basic cost of new builds and actually building one in England highlights how supply shortages have fired up the housing market.

“While it’s less of an issue up North, in the South the costs involved and high competition have pushed prices out of reach of many.

“London and its suburbs are also fuelled by interest from international buyers, meaning the final price has little relationship to underlying labour and material costs.”