New-build homes make up just 8.1% of properties currently listed for sale across Great Britain, with availability particularly limited in Wales and London, research suggests.
Analysis by UK Property Development (UKPD) found that 42,162 of the 522,714 homes on the market are new-build properties, highlighting significant regional differences in the supply of newly constructed homes.
Scotland has the highest proportion, with new-builds representing 14.2% of available properties. It is followed by the North East at 10.9% and the East Midlands at 10.0%.
By contrast, new homes account for only 3.9% of listings in Wales. London has the next lowest regional proportion at 6.3%, followed by the South West at 6.5%.
WIDE VARIATION BETWEEN CITIES
UKPD’s analysis also points to substantial differences between major cities. Liverpool has the highest new-build share among the locations studied, at 16.5% of properties for sale.
Glasgow follows at 13.2%, with Edinburgh at 11.8% and Newcastle at 11.3%. New-build homes represent 9.9% of listings in Manchester, compared with 7.2% in Leeds and 6.8% in Leicester.
Availability is considerably more restricted in some southern cities. New-build properties make up just 2.3% of homes listed in Brighton, the lowest proportion in the study, while Nottingham stands at 3.2% and Bristol at 4.1%.
Sheffield records a figure of 4.5%, while Birmingham and Cardiff are both at 4.6%.
DEVELOPERS EYE POTENTIAL DEMAND
The findings come as Prime Minister Andy Burnham has set out proposals for a new Help to Buy-style scheme. UKPD argues that any measure that stimulates demand for new homes would place further emphasis on the availability of new-build stock.
Andy Morrison, director of UK Property Development, said: “Andy Burnham’s plan to bring back Help to Buy will almost certainly increase buyer demand for new-build homes. But these figures highlight just how limited the choice of new-build homes is up and down Britain.
“They account for barely 8% of the market, so buyers who specifically want a newly built property are already dealing with a small pool, and the challenge becomes even greater for those looking for a genuinely high-quality or luxury new home. Should Help to Buy come back, the problem will only intensify.”
Morrison said London was a particularly notable example, with new-build homes representing 6.3% of properties currently available.
He added: “More broadly, the figures also underline the scale of the challenge facing the government as it seeks to accelerate housebuilding. Ambitions to go ‘full throttle’ on housing delivery will ultimately need to translate into more homes being built and brought to market.”
“Until that happens, buyers will continue to face limited choice, particularly when it comes to high-quality new-build homes.”
