"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"
- Verona Frankish - Yopa
New-build property sales have fallen sharply this year, but improving mortgage conditions and affordability initiatives are helping more buyers access the market, according to the latest research from Yopa.
The company analysed government data on new-build sales across Britain over the past three years, assessing the average monthly number of transactions in each region. Between 2023 and 2024, monthly sales dipped by 3.9%. However, so far in 2025, average monthly new-build sales volumes have dropped by 62%, marking a significant slowdown across almost every region.
The decline has been most severe in Yorkshire and the Humber (-77.5%), followed closely by the 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%), and the South East (-63.4%). London saw a smaller fall of -53.9%, while Scotland recorded the mildest reduction at -19.1%.
One of the key drivers behind this slowdown is affordability. Yopa’s analysis found that the average new-build house price across Britain has risen by 8.1% over the past year. New-build homes now carry an average 30.5% price premium compared to existing properties, up from around 25% two years ago.
Despite higher prices, new-build homes continue to attract interest for their modern design, energy efficiency and buyer incentives, such as fitted appliances or developer contributions.
There is also a range of schemes supporting homebuyers seeking new-build properties:
Shared Ownership: allowing purchasers to buy a portion of a home and pay rent on the remainder, with the flexibility to increase their share over time.
First Homes Scheme: offering discounts of 30%–50% for first-time buyers and key workers to lower purchase costs.
Deposit Unlock: which enables some buyers to purchase with deposits as low as 5%.
Lifetime ISAs: providing a 25% government bonus on savings towards a deposit.
Green mortgage products: which reward energy-efficient properties with reduced rates and long-term cost savings.
Mortgage lenders have also introduced several products aimed at improving new-build affordability, including:
Loans up to 90% loan-to-value (LTV) for both houses and flats
The ability to borrow up to 6x income at 90% LTV, or 7x for earners above £50,000 up to 85% LTV
Acceptance of lender incentives up to 5%
No early repayment charges for overpayments
Automatic rate reductions as the loan-to-value decreases
Options for both first-time buyers and home movers
Long-term fixed-rate deals of 5–15 years for greater stability
While certain lenders continue to apply stricter conditions for off-plan or specific new-build developments, these measures are expanding the range of options available to buyers.
“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," explained Verona Frankish, chief executive of Yopa.
She added, "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.”
