New-build property prices in the East Midlands have fallen by more than £43,000 in the past year, according to fresh analysis from Propertymark, highlighting sharp regional contrasts in the housing market.
The average price of a new-build instruction in the region dropped to £360,193 in July 2025, down from £403,271 a year earlier — the steepest decline across the UK outside London.
The data shows notable decreases elsewhere: the North East recorded a £37,123 fall, while the South West saw average prices drop by £30,826. London experienced the largest fall in absolute terms, with prices plunging by £122,770, leaving the average cost of a new-build instruction in the capital at £845,866.
By contrast, some regions saw year-on-year increases. The East of England rose by £20,763 to £523,714, while the West Midlands recorded a £13,182 increase to £384,443. The North West also bucked the trend, with prices climbing by £26,116 to £364,838.
Across the UK as a whole, the average asking price for a new-build property instruction stood at £427,143.
The findings come as the UK government pushes ahead with its Planning and Infrastructure Bill, designed to accelerate the construction of 1.5 million new homes before the next general election. Devolved administrations have also set ambitious housing targets to keep supply aligned with real-world demand.
However, the data underlines the scale of the affordability challenge. Even with price drops in several regions, average new-build values remain far above the reach of many households.
Nathan Emerson, chief executive of Propertymark, said: “Any house price decreases often represent a positive opportunity for aspiring homeowners to progress with their ambitions regarding ownership. We have witnessed a noteworthy mix of price fluctuations regarding new-build properties in various areas across the UK.
However, with many mortgage providers typically willing to lend around five times an annual income, there are still substantial challenges to overcome regarding potential affordability for many when looking at average prices regionally regarding new properties.”
Emerson stressed the need for a “greater flow of new homes” in the regions where they are most needed, to keep the dream of home ownership attainable.
Regional breakdown of average new-build prices (July 2025)
- East Midlands – £360,193 (down £43,078 YoY)
- London (inner & outer) – £845,866 (down £122,770)
- North East – £317,989 (down £37,123)
- South West – £442,397 (down £30,826)
- Wales – £338,222 (down £24,076)
- Northern Ireland – £285,158 (down £1,949)
- Scotland – £367,786 (up £3,726)
- Yorkshire & Humberside – £342,998 (up £10,401)
- West Midlands – £384,443 (up £13,182)
- East of England – £523,714 (up £20,763)
- North West – £364,838 (up £26,116)
- South East – £552,109 (down £20,530)
