Only one in 10 newly built homes in the UK reach the open sales market, new data shows – with experts warning Britain risks becoming a ‘nation of renters’
Only one in 10 new builds make it to the open market(Image: Getty Images)
Only one in 10 newly built homes reach the open sales market, according to data. Figures from estate agent CRM providers Alto, combined with ONS statistics, revealed the vast majority of new build properties don’t reach the open market for Brits to purchase.
Instead, many are allocated to build-to-rent developments, developer direct sales, and affordable housing or shared ownership schemes – restricting the access homeowners have to the new build market.
Of the estimated 200,000 new properties constructed in England over 2024/25, just 21,261 reached the open market – where ordinary buyers can view them and submit direct offers, often through estate agents. In London just 2% of new builds reach 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.”
Riccardo suggests the UK is beginning to mirror parts of Europe where long-term renting is more commonplace. 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.”
Click here to discover how many new builds in your area are available to buy
A survey of 2,000 adults revealed that 44% feel there aren’t enough properties on the market for them to buy. Nearly half (46%) believe new builds in their area are targeted at investors and landlords, rather than local buyers. As a result, 36% are convinced they will never own their own home.
Many of those concerned about getting onto the property ladder also point to the market being too costly (60%) and not earning a sufficient wage (58%) as primary factors. However, 15% said they actually prefer renting, embracing a more European-style of living.
The study, conducted via OnePoll.com, discovered that 57% believe it is the government’s duty to ensure there are adequate homes available for people to live in.
Nearly half (46%) indicated there could be greater support for first-time buyers, while 27% believed there was a need for stronger regulation of rental prices.
According to 61%, property investors and landlords are squeezing out first-time buyers and 48% would back stricter restrictions on investors seeking to purchase 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 FEWEST PROPERTIES REACH 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%