Only 10% of New Build Homes Reach Open Market, Data Reveals
Just one in ten newly built homes in England enter the open sales market, according to recent data analysis. Information from estate agent CRM providers Alto, combined with ONS figures, indicates that the vast majority of new build properties are not available for purchase by regular buyers on the open market.
Limited Access for Prospective Homeowners
Instead of being listed for open sale, many new homes are directed towards build-to-rent developments, developer direct sales, and affordable housing or share ownership schemes. This trend significantly restricts access for prospective homeowners looking to buy new properties.
Of the estimated 200,000 new properties built in England over the 2024/25 period, only 21,261 made it to the open market. In this market, regular buyers can view properties and make direct offers, typically through estate agents.
London Leads in Market Exclusion
London is the region where the fewest properties reach the open market, with just two per cent of new build homes available for purchase. This signals a shift towards a more European-style model of living, where renting long-term is common and homeownership is less prevalent.
Riccardo Iannucci-Dawson, CEO of Alto, commented on the findings. "People see homes being built and assume they'll be available to buy, but the reality is many never reach the market buyers actually interact with day to day," he said. "This isn't just about how many homes are built, but how many are accessible - and in some areas, that's a small fraction of total supply."
Public Sentiment and Market Challenges
A study of 2,000 adults found that 44 per cent feel there aren't enough properties available for them to buy. Nearly half (46 per cent) claim new builds in their area are aimed at investors and landlords rather than local buyers.
As a result, 36 per cent believe they won't own their own property, blaming the market for being too expensive (60 per cent) and not earning enough (58 per cent). Meanwhile, 15 per cent said they prefer renting, aligning with the European-style of living.
The research, conducted via OnePoll.com, also revealed that 57 per cent think it's the government's responsibility to ensure there are enough homes for people to live in. Nearly half (46 per cent) called for more support for first-time buyers, and 27 per cent felt there was a need for increased regulation of rental prices.
Support for Tighter Restrictions
Property investors and landlords are perceived to be crowding out first-time buyers in the housing market, according to 61 per cent of respondents. Additionally, 48 per cent would support tougher restrictions on investors looking to buy new properties.
Riccardo Iannucci-Dawson added, "It is clear the appetite to own a home is still there, but the opportunity doesn't mirror their eagerness. The open market is often estate agent-led and follows the traditional path of the buyer finding a property through an agent. It is clear to see a large proportion of homes aren't making it to the 'typical' sales stream because it removes the opportunity for so many to get on the ladder."
Regional Breakdown of Open Market Availability
The areas where the least properties make it to the open market are as follows:
- London – 2.12 per cent
- North West – 7.51 per cent
- North East – 8.49 per cent
- East of England – 9.67 per cent
- South East – 10.10 per cent
- East Midlands – 11.67 per cent
- Yorkshire and the Humber – 13.66 per cent
- West Midlands – 13.86 per cent
- South West – 17.01 per cent
This data highlights significant regional disparities in housing accessibility, with London facing the most severe limitations for prospective buyers seeking new build homes on the open market.
