Only one in ten newly built houses make it to the open sales market (Image: Getty)
Only one in 10 newly built homes enter the open sales market, according to data. Information from estate agent CRM providers Alto, combined with ONS figures, found the vast majority of new build properties don’t make it to the open market for Brits to buy.
Instead, many are going to build-to-rent developments, developer direct sales, and affordable housing or share ownership schemes – limiting the access homeowners have to the new build market.
Of the estimated 200,000 new properties built in England over 2024/25, just 21,261 made it to the open market – where regular buyers can see them and make direct offers, often via estate agents. In London just 2% of new builds make it to the open market.
Riccardo Iannucci-Dawson, CEO of Alto, said: “People see homes being built and assume they’ll be available to buy, but the reality is many never reach the market.
“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.”
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Riccardo suggests the UK is starting to mirror parts of Europe where long term-renting is more common. In France and Germany, “large-scale rental developments form a bigger part of the housing mix.” If Britain follows suit, over time, it could become “a nation of renters.”
Research of 2,000 adults found 44% feel there aren’t enough properties available for them to buy. Nearly half (46%) claim new builds in their area are aimed at investors and landlords, rather than local buyers. As a result, 36% believe they won’t ever own their own property.
Many who are worried about not being able to buy their homes also blame the market for being too expensive (60%) and not earning enough (58%), as key reasons. However, 15% said they prefer renting, tapping into the European-style of living.
The study, carried out via OnePoll.com, found 57% think it’s the government’s responsibility to make sure there are enough homes for people to live in.
Nearly half (46%) said there could be more support for first-time buyers, and 27% felt there was a need for increased regulation of rental prices.
Nearly half of respondents believe there aren’t enough properties to buy (Image: Getty)
Property investors and landlords are crowding out first time buyers in the housing market, according to 61% – and 48% would support tougher restrictions on investors looking to buy new properties.
Riccardo Iannucci-Dawson of Alto 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.”
THE AREAS WHERE THE LEAST PROPERTIES MAKE IT TO THE OPEN MARKET
- London – 2.12%
- North West – 7.51%
- North East – 8.49%
- East of England – 9.67%
- South East – 10.10%
- East Midlands – 11.67%
- Yorkshire and the Humber – 13.66%
- West Midlands – 13.86%
- South West – 17.01%
