1 in 8 new-build homes unsold after six months
Developers hold their nerve as one in eight new-build homes remain unsold after six months
Jonathan Samuels, CEO of specialist lender, Octane Capital, believes that developers are increasingly prioritising profitability over speed of sale, with new-build homes spending longer on the market as developers resist unnecessary price reductions and instead look to protect scheme values.
Octane Capital analysed a representative sample of more than 1,100 live new-build property listings across England, assessing how long homes had been on the market before comparing the findings to the wider stock of new-build homes currently available for sale. The analysis also examined the proportion of listings that had seen an asking price reduction.
The research shows that more than a quarter (25%) of new-build homes have been on the market for longer than three months.
More notably, one in eight (13%) have now been searching for a buyer for more than six months, whilst 4% have remained on the market for over a year.
Applied across England’s estimated 34,831 new-build homes currently for sale, this suggests that around 4,400 completed new-build properties have now spent more than six months on the market.
Despite this extended selling period, relatively few developers appear willing to discount. Just 14.5% of all new-build homes currently for sale have seen an asking price reduction, suggesting many are choosing to extend the sales period rather than accept lower offers that could erode scheme profitability.
Whilst this approach can help protect gross development values and overall returns, it also means capital remains tied up within completed developments for longer, delaying its recycling into future schemes.
As a result, developer exit finance is becoming an increasingly important part of the development lifecycle. By allowing developers to refinance completed schemes, repay development facilities and release working capital, it provides the breathing space needed to continue marketing properties without unnecessary pressure to discount simply to meet loan maturities.
The findings also come at a time when developers are becoming increasingly cautious about commencing new projects. Octane Capital’s latest Developer Sentiment Survey found that 57% of developers are now less likely to break ground on new schemes during 2026, whilst 83% expect to utilise specialist finance to help navigate current market conditions.
Jonathan Samuels, CEO of Octane Capital, commented:
“The immediate assumption is often that if new-build homes aren’t selling quickly, developers will simply reduce prices, but in reality that’s often the last option they want to consider.
Every discount comes straight off the bottom line and, after several years of planning, construction and rising build costs, protecting profitability has become more important than ever.
Many developers would rather give themselves additional time to sell than unnecessarily erode the value of a scheme, particularly where market conditions remain relatively stable and buyer demand is still there.
That’s why developer exit finance has become increasingly important. It provides developers with the breathing space to refinance completed schemes, release capital and continue selling without the pressure of having to accept lower offers simply to satisfy an approaching loan maturity.
Ultimately, it’s about giving developers greater control over the final stage of a project, helping them maximise value whilst putting themselves in a stronger position to move on to their next opportunity.”
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