As of 2024, around 4.7 million buy-to-let properties are currently rented across the UK, accounting for 1 in every 5 households. Meanwhile, buy-to-let lending has grown by 12% year-on-year, reaching £20.5 billion in 2024. Mortgage rates have stabilised, with the average two-year fixed buy-to-let mortgage at 75% LTV around 4.3% as of early 2025.
New build properties tend to offer lower maintenance costs, improved energy efficiency, and greater tenant appeal. In addition, the median price for new build homes is £330,000, compared to £272,000 for existing properties.
For buy-to-let investors looking to expand their portfolio, the top-performing towns and cities could represent the next big opportunity, with strong yields in commuter towns, emerging regions in Northern Ireland and Scotland, and even some overlooked city suburbs.
Among the regions showing strong potential, Milton Keynes (17.39%), East Riding of Yorkshire (17.05%), and Warwickshire (14.44%) recorded the highest share of new build homes between 2023 and 2025 — highlighting areas where development is meeting demand. During the same period, detached homes accounted for 13.87% of all new build sales, offering spacious, high-appeal options that are especially attractive to families and long-term tenants, followed by flats and maisonettes at 11.21%, which cater to buyers seeking more affordable or centrally located properties.
A new study by buy-to-let insurance experts at Alan Boswell Group has pinpointed the UK’s biggest new build hotspots, showing where prospective buyers have the best chance of securing a newly built home, and where they might struggle to find one at all.
Despite being smaller areas, Banwell, Swanscombe, and Arundel recorded the highest proportion of new build sales in 2023–2024.
1. Banwell, North Somerset
Topping the list is Banwell, a quiet village in North Somerset with a population of just over 3,000. Despite its modest size, it leads the nation in new build property concentration: out of 275 total sales in the area between 2023 and 2024, 180 were new builds. That’s an impressive 65.45% new build share, the highest proportion of any UK location, making Banwell a modern housing hotspot. Its growth signals rising demand in rural areas where buyers can escape city prices without sacrificing quality or space.
2. Swanscombe, Kent
Coming in second is Swanscombe in Kent, another small town experiencing a construction boom. With 394 new builds sold out of 711 total transactions, it boasts a 55.41% new build share. Thanks to its proximity to London and lower property prices, Swanscombe offers a realistic alternative for those seeking a new build lifestyle near the capital without the hefty city price tag, making it ideal for both first-time buyers and landlords seeking rental demand near the commuter belt.
3. Arundel, West Sussex
Third place goes to Arundel, a picturesque town nestled in the South Downs. Known for its historic charm and medieval castle, it may come as a surprise that 359 new builds were sold out of 766 total transactions, a 46.87% new build share. While old properties still dominate the landscape, there’s clearly an appetite for modern alternatives, particularly from those relocating from urban areas. Its proximity to coastal hubs like Worthing and Portsmouth adds to its appeal.
The new build blackspots
At the other end of the scale, 207 towns and cities across the UK recorded 0% new build share in 2023–24, meaning no new build homes were sold at all. While some of these locations are small villages with little demand for expansion, others are surprisingly large and well-known.
Among them are Twickenham in Greater London (1,668 homes sold), Southsea in Portsmouth (2,029 homes sold), and Hebden Bridge in West Yorkshire (463 homes sold).
These figures suggest that heritage protection, planning constraints, or simply a saturated old-build market are preventing modern development in certain areas, posing challenges for buyers prioritising energy efficiency or accessibility.
When focusing on just the UK’s most populated cities, new builds are surprisingly scarce in comparison. Despite strong demand, most urban centres are struggling to keep pace with construction.
Derby ranks highest among large cities but only 151st overall, with 1,692 new builds sold out of 10,312 transactions, a modest 16.41% share.
Liverpool, known for its cultural heritage and regeneration efforts, saw 2,602 new build sales out of 20,663 (12.59%).
Manchester, a key industrial and economic hub, recorded 3,041 new builds sold from 27,582 total (11.03%).
These figures highlight how supply is struggling to meet demand in growing cities, a trend that could drive property prices even higher.
London’s surprising middle ground
London ranks 408th out of 1,101 local areas in the UK for new build share, placing it squarely in the middle of the pack. But among the UK’s largest cities, it comes 10th, with a new build share of 8.62% between 2023–24. While this sounds modest, the capital still recorded a substantial 9,836 new build sales out of 114,086 total transactions. Although it may lag behind some smaller towns percentage-wise, London continues to deliver volume thanks to large-scale regeneration zones like Battersea and Stratford.
Heath Alexander-Bew from Alan Boswell Group commented: “The UK’s housing demand remains intense, especially in large cities where new build construction often can’t keep up with population growth. However, this data clearly shows that regional development hotspots, even in smaller towns like Banwell or Swanscombe, are filling that gap.
"For buyers, especially families or first-time homeowners, these areas represent opportunities to secure modern, energy-efficient homes in growing communities. The proportion of buyers moving into detached homes has grown from 25% to 32% over the past decade, highlighting a steady shift in preference toward more spacious living. In our study, detached properties made up 13.87% of all new build sales between 2023 and 2025, underlining their continued appeal.”
