Fewer first-time buyers are choosing new build properties, with the national average falling to 7.72% in 2025, compared to 10.03% in 2022. This 2.31 percentage point decline highlights a growing affordability gap for those trying to get on the property ladder.
The East of England currently has the highest share of first-time buyers opting for new builds at 10.01%, while Wales records the lowest at 4.27%. Scotland stands out as the only part of the UK where demand among first-time buyers for new builds is rising, increasing by 2.43% year-on-year.
A report from Compare My Move outlines the national trend and explores the reasons behind the drop. Dave Sayce, founder and managing director of Compare My Move, links the decline to a combination of price inflation and reduced government support.
“Being a first-time buyer is getting harder, the average cost of a new build home in England as of October last year was £420,000, rising 18% from the previous year, and now with the reduction of the Stamp Duty relief for first-time buyers, the tax they will have to pay on an average new-build home will be £6,000, even with a 5% deposit first-time buyers will have to pay £27,000 up front on average. That’s without the mortgage, conveyancing, snagging, and removals costs,” he said.
The downturn in interest is widespread. The East Midlands and Wales have seen the sharpest declines in new build purchases by first-time buyers. The drop is attributed to affordability issues and limited availability in some areas.
Scotland, however, shows a contrasting trend. It has experienced the largest increase in new build purchases among first-time buyers between 2024 and 2025. A key factor is supply. Scotland builds more new homes relative to its population than anywhere else in the UK.
Per 1,000 people, the number of new builds completed is as follows:
Scotland: 3.64
England: 2.75
Wales: 1.51
The higher supply is only part of the picture. Scotland also benefits from more affordable housing and targeted support schemes. One such initiative is the New Supply Shared Equity scheme, which allows the government to purchase up to 40% of a property jointly with the buyer. This arrangement helps reduce the deposit and mortgage requirements while keeping the buyer as the legal homeowner.
This combination of availability and affordability appears to be drawing more first-time buyers in Scotland towards new build options, even as buyers elsewhere turn away.
