Just TWO per cent of newly built homes enter the open sales market
Just two per cent of newly built homes enter the open sales market, according to new data.
Information from estate agent CRM providers Alto, combined with ONS figures, found the vast majority of new build properties don’t make it to the open market for Brits to buy.
Instead, many are going to build-to-rent developments, developer direct sales and affordable housing or share ownership schemes – limiting the access prospective homeowners have to the new build market.
Of the estimated 200,000 new properties built in England over 2024/25, just 21,261 made it to the open market – where regular buyers can see them and make direct offers, often via estate agents.
London is the region where the fewest properties make it to the open market – just two per cent of new build homes.
Even though it’s the worst offending region, Manchester as a city saw less new properties make it to market with just one per cent – whereas just three per cent of properties in Birmingham made it to market. This signals a move to a more European-style model of living, where the majority do not own a home, but rent throughout their lives.
Riccardo Iannucci-Dawson, CEO of Alto, which has created a free tool showing how many newly built properties near you are actually available to buy, said: “People see homes being built and assume they’ll be available to buy, but the reality is many never reach the market buyers actually interact with day to day.”
“This isn’t just about how many homes are built, but how many are accessible - and in some areas, that’s a small fraction of total supply.
“At the same time, the UK is starting to mirror parts of Europe, like France and Germany, where long-term renting is more common and large-scale rental developments form a bigger part of the housing mix. Over time, that may lead to Britain becoming more of a nation of renters.”
It comes after research of 2,000 adults found 48 per cent of Londoners feel there aren’t enough properties available for them to buy, with 69 per cent claiming new builds in their area are aimed at investors and landlords, rather than local buyers.
As a result, 26 per cent of those living in the capital believe they won’t own their own property, blaming the market for being too expensive (68 per cent) and not earning enough (53 per cent), while 15 per cent said they prefer renting, tapping into the European-style of living.
The study found 61 per cent think it’s the government’s responsibility to make sure there are enough homes for people to live in.
More than half (52 per cent) said there could be more support for first-time buyers, and 37 per cent felt there was a need for increased regulation of rental prices.
Property investors and landlords are crowding out first time buyers in the housing market, according to 70 per cent – and 40 per cent would support tougher restrictions on investors looking to buy new properties.
Riccardo Iannucci-Dawson of Alto added: “It is clear the appetite to own a home is still there, but the opportunity doesn’t mirror their eagerness.
“The open market is often estate agent led and follows the traditional path of the buyer finding a property through an agent.
“It is clear to see a large proportion of homes aren’t making it to the ‘typical’ sales stream because it removes the opportunity for so many to get on the ladder.”
The areas where the least properties make it to the open market:
- London – 2.12 per cent
- North West – 7.51 per cent
- North East – 8.49 per cent
- East of England – 9.67 per cent
- South East – 10.10 per cent
- East Midlands – 11.67 per cent
- Yorkshire and the Humber – 13.66 per cent
- West Midlands – 13.86 per cent
- South West – 17.01 per cent