Developers are showing reluctance to cut asking prices for new-build homes, even when properties have been on the market for several months. Analysis by Octane Capital, based on over 1,100 live listings across England, found that a quarter of new-build homes had been advertised for longer than three months.
One in eight properties had been available for over six months, with 4% on the market for more than a year. Despite these longer selling periods, only 14.5% of available new-build properties had their asking price reduced.
Jonathan Samuels, chief executive of Octane Capital, noted that developers often view price reductions as a last resort. He stated that protecting profitability is crucial after years of planning, construction, and rising build costs. Developers are opting to allow more time for sales rather than accepting offers that could reduce the value of a scheme.
Applying these findings to the estimated 34,831 new-build homes for sale across England suggests approximately 4,400 have been on the market for over six months. This approach means capital remains tied up in completed developments for longer, potentially delaying future projects.