New-build transaction volumes fall by 62%
New-build sales volumes fall by 62%, but market improvements are driving accessibility for homebuyers
The latest insight from Yopa has found that, whilst average monthly new-build sales volumes are down 62% so far in 2025, new-build homebuyers are benefitting from improvements to market affordability, with mortgage lenders currently introducing a range of new initiatives and products designed to help boost new-build affordability among the nation’s homebuyers.
Yopa analysed Gov data on new-build sales volumes across Britain over the last three years, looking at the average monthly level of sales across each region of Britain.
The analysis shows that between 2023 and 2024, the average number of monthly new-build sales volumes dipped by a marginal 3.9%. However, so far this year, the same average level of monthly new-build transactions has plummeted by 62%.
This slowdown is evident across all regions, with Yorkshire and the Humber (-77.5%), North East (-77.3%), South West (-76.9%), North West (-70.5%), Wales (-70.5%), East Midlands (-69.0%), West Midlands (-67.5%), East of England (-65.9%), South East (-63.4%), and London (-53.9%) all recording the most significant drops.
Scotland has been the least affected, seeing a smaller reduction of -19.1%.
One driving factor, as with any area of the market, is affordability. Additional analysis by Yopa shows that the average new-build house price across Britain has increased by 8.1% over the last year. As a result, new-build homes now command a premium of 30.5% versus existing properties – a premium that is up from around 25% over the last two years.
However, new-build homes do offer a range of benefits, from modern design and energy efficiency to incentives such as developer contributions or fitted appliances.
There are also a range of initiatives designed to help new-build homebuyers when it comes to securing a property: –
Shared Ownership allows purchasers to buy a share of a new-build property while paying rent on the remainder, with the flexibility to increase ownership over time.
The First Homes Scheme provides discounts of 30%–50% for first-time buyers or key workers, lowering the purchase price and reducing mortgage requirements.
Deposit Unlock schemes allow some buyers to purchase with as little as 5% deposit, while Lifetime ISAs continue to offer a 25% government bonus to help grow savings for a deposit. Energy-efficient properties can also benefit from green mortgage products, potentially reducing monthly repayments and offering further long-term cost savings.
In addition to the helping hand offered by these various initiatives, improvements to the mortgage market landscape have also seen lenders act to help boost new-build affordability amongst homebuyers, including: –
Up to 90% loan-to-value available for both flats and houses
Borrow up to 6x income at 90% loan-to-value and 7x for those with an income of £50,000 or more up to 85% loan-to-value.
Lender incentives accepted up to 5%
No early repayment charges for overpayments
Automatic rate reductions as loan-to-value decreases during the mortgage term
Available for first-time buyers and home movers
Long-term fixed rates (5–15 years) for greater certainty
So whilst homebuyers should be aware that certain lenders may have specific criteria for new-build purchases, particularly for off-plan properties, there’s arguably never been a better time to secure a new-build property and, with the right guidance, these properties can be highly accessible for buyers at all market thresholds.
Verona Frankish, CEO of Yopa, commented:
“New-build market activity has been particularly subdued so far this year and this is partly down to a misconception amongst homebuyers, who believe that they simply can’t afford a new home due to the higher market premiums they often command.
However, this simply isn’t the case and we’ve seen lenders introduce a range of new products and initiatives to help the nation’s homebuyers capitalise on the existing initiatives found within the new-build sector.
The combination of low-deposit options, enhanced income multiples and specialist purchasing schemes is creating opportunities for buyers who may have thought a new-build was out of reach. However, with the right guidance, now could be one of the best times in recent years to secure a new-build home.”
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