Analysis from Property Inspect suggests that fewer than one in five new-build properties were sold subject to contract during Q4, underlining a continued cooling in buyer appetite as the year drew to a close.

The firm reviewed live market listings across Great Britain to establish what proportion of new-build homes were already under offer, using this as a proxy for homebuyer demand.

The findings show that just 16.8% of new-build stock had secured a buyer in Q4, down 0.9% on the previous quarter and 1.8% lower than the same period a year earlier.

Several markets recorded particularly weak levels of demand. Aberdeen was the softest-performing location, with only 1.5% of new-build homes sold subject to contract. Liverpool followed at 3.6%, while Newcastle recorded demand of 4.5%. Swansea and Newport also featured among the weakest markets, at 5.8% and 6.7% respectively.

Quarter-on-quarter data points to notable declines in a number of cities. Newport saw the steepest fall, with demand dropping by 8%, while Sheffield recorded a 7.6% reduction.

Bristol also cooled significantly, down 5.2%, alongside falls in Aberdeen at 4.5%, Leicester at 4.3% and Plymouth at 3.4%. Demand in London edged down more modestly, slipping by 0.4% over the quarter.

RESILIENT POCKETS REMAIN

Despite the broader slowdown, Property Inspect’s research highlights areas where demand has remained comparatively strong. Southampton continued to lead the market, with 39.7% of new-build homes going under offer in Q4. Nottingham followed at 25.6%, just ahead of Sheffield on 25.5%, while Portsmouth and Bournemouth recorded demand of 24.7% and 22.9% respectively.

Nottingham also stood out for recording the strongest quarterly improvement, with demand rising by 7.5%. Glasgow saw an increase of 3.3%, while Portsmouth posted growth of 3%. Bournemouth recorded a smaller uplift of 0.4%, indicating that some markets continued to attract buyers despite wider headwinds.

Sián Hemming-Metcalfe, operations director at Property Inspect, said: “New-build buyer demand has continued to ease as we closed out Q4, with fewer than one in five homes securing a buyer and momentum softening both quarter-on-quarter and year-on-year.

“Ongoing affordability pressures, a higher-for-longer interest rate environment and continued uncertainty around the direction of housing policy have combined to keep many buyers on the sidelines.

“With new-build homes typically priced at a premium, it’s unsurprising that this part of the market has felt the impact most acutely.

“That said, the outlook is not universally downbeat, and well-presented new-build stock can still generate strong levels of demand across much of the country, even in a more cautious market.

“But homes will not attract buyers by default: they must be constructed and finished to a high quality standard that creates confidence in buyers.

“This reinforces the growing importance of quality, compliance and consistency. At Property Inspect, we work with developers and agents to deliver smarter inspection and reporting solutions that help ensure new homes are brought to market at the highest possible standard, supporting buyer confidence and sales performance as market conditions remain challenging.”