Shocking Data: Only 10% of New Build Homes Reach Open Market
According to recent data, a mere one in ten newly constructed homes in England actually enters the open sales market where regular buyers can purchase them. This startling statistic comes from information compiled by estate agent CRM provider Alto, combined with figures from the Office for National Statistics (ONS). The findings highlight a significant trend where the vast majority of new build properties are diverted away from the traditional open market, limiting opportunities for prospective homeowners.
Where Are the New Homes Going?
Instead of being available for open purchase, many new builds are being channeled into build-to-rent developments, direct sales by developers, and affordable housing or share ownership schemes. Of the estimated 200,000 new properties built in England during the 2024/25 period, only 21,261 made it to the open market. This means that everyday buyers, who typically rely on estate agents to find and offer on homes, have drastically reduced access to new housing stock.
London stands out as the region with the lowest availability, where just two percent of new build homes reach the open market. This trend indicates a potential shift toward a more European-style model of living, where renting long-term becomes the norm rather than homeownership. Riccardo Iannucci-Dawson, CEO of Alto, commented on this development, noting that people often see homes being constructed and assume they will be available for purchase, but the reality is far different.
Public Perception and Market Pressures
Supporting this data, a survey of 2,000 adults revealed that 44 percent feel there are not enough properties available for them to buy. Nearly half (46 percent) believe that new builds in their area are targeted at investors and landlords rather than local buyers. As a result, 36 percent of respondents expressed doubt about ever owning their own property, citing reasons such as an overly expensive market (60 percent) and insufficient income (58 percent). Interestingly, 15 percent stated a preference for renting, aligning with the emerging European-style living trend.
The study, conducted via OnePoll.com, also found that 57 percent of participants think it is the government's responsibility to ensure an adequate supply of homes for people to live in. Additionally, 46 percent called for more support for first-time buyers, while 27 percent advocated for increased regulation of rental prices. A significant 61 percent of respondents believe that property investors and landlords are crowding out first-time buyers, with 48 percent supporting stricter restrictions on investors purchasing new properties.
Regional Disparities in Market Access
The data further breaks down the percentage of new build homes reaching the open market by region, illustrating stark disparities across England:
- London – 2.12%
- North West – 7.51%
- North East – 8.49%
- East of England – 9.67%
- South East – 10.10%
- East Midlands – 11.67%
- Yorkshire and the Humber – 13.66%
- West Midlands – 13.86%
- South West – 17.01%
Riccardo Iannucci-Dawson emphasized that while the desire to own a home remains strong among Brits, the opportunities do not match this eagerness. He pointed out that the open market, typically led by estate agents, is becoming less accessible as a large proportion of homes bypass the traditional sales stream. This shift not only affects individual buyers but also contributes to broader societal changes, potentially leading Britain toward becoming a nation of renters, similar to countries like France and Germany.
