New-build homes are once again back in favour with property investors and first-time buyers in London, according to new figures from estate agency Foxtons.
The agency’s New Homes and Investments division reported a 16.5% rise in sales volumes in the first half of 2025 compared with the same period last year. The total value of new-build transactions also edged up by 2.2% year-on-year.
The strongest activity came from first-time buyers, who accounted for 58.5% of all Foxtons’ new-build transactions between January and June. Landlords represented a further 25.4% of deals, while home movers made up 16.1%.
Mortgage-backed purchases continue to dominate, with 72.6% of buyers using finance. However, cash buyers still made up a significant 27.4% of the market, taking advantage of their ability to exchange contracts in as little as 10 days.
A Foxtons spokesperson said the rebound highlighted the capital’s resilience as a property investment hub: “The London property market has continued to show why it is a great long-term investment over the first six months of the year and the Foxtons New Homes team have made sure buyers, landlords and institutional investors have benefited from our expertise in navigating the market conditions.
“Looking forward, it’s reassuring to see that first-time buyers account for by far the largest proportion of our new homes activity and that a good proportion of homes are being sold off plan.”
The agency also highlighted improvements in the mortgage market, with falling rates and more competitive products encouraging buyers who had delayed purchases last year.
The government recently signalled its intention to ease lending criteria to support homebuyers, which Foxtons said could further boost activity in the second half of the year.
“With a healthier lending environment, we expect more buyers to move ahead with their plans in the coming months,” the agency added.
Analysts note that the pick-up in new-build sales offers a counterpoint to the broader UK housing market, where high supply and affordability concerns have weighed on transaction levels. London’s investor appetite and sustained demand from first-time buyers could help underpin prices in the capital’s new-build sector.
