Buyer appetite for newly built homes has continued to weaken, with new builds accounting for just 9 per cent of completed purchases last year, according to analysis by Bird & Co.
The conveyancing firm’s review of 2025 transaction data shows a steady decline in the proportion of buyers opting for new-build properties, extending a downward trend seen in recent years.
September marked the lowest point, with new builds representing just 7 per cent of residential conveyancing activity, the weakest level recorded since 2019. Although there was a modest recovery in December, when new builds accounted for 11 per cent of purchases, this remained well below the 16 per cent recorded in December 2022.
The decline comes at a time when the market is increasingly dominated by first-time buyers. Bird & Co said 76 per cent of its clients in 2025 were entering homeownership for the first time, with more than 80 per cent purchasing properties intended for long-term occupation.
Against that backdrop, newly finished developments appear to be struggling to align with buyers’ financial constraints and practical priorities.
New-build properties typically command a premium compared with comparable older homes, a factor that may have limited accessibility for buyers already contending with higher mortgage costs, larger deposit requirements and ongoing cost-of-living pressures.
Bird & Co suggested that affordability challenges have prompted many buyers to consider established housing stock, where pricing may be more competitive relative to location and size.
Beyond pricing, practical considerations are also influencing purchasing decisions. In established urban and suburban neighbourhoods, existing homes often offer closer proximity to employment hubs, transport links and established amenities.
Buyers may also prioritise internal layout, usable living space and familiarity with a neighbourhood over the appeal of brand-new finishes or enhanced sustainability features.
While developers continue to highlight energy efficiency and modern design as key selling points, the data suggests that for many purchasers, particularly first-time buyers, value, location and long-term liveability are outweighing the attraction of new-build status.
The figures reinforce the broader cooling in parts of the UK housing market as buyers recalibrate expectations in response to higher borrowing costs and tighter household budgets.
