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New-build demand shifts from London to commuter counties, research suggests

Demand for new-build homes in London is reportedly lagging behind surrounding commuter counties, with Essex showing significantly higher interest, according to new research.

  • 8.8% of new-build properties in London are sold subject to contract, compared to 27.6% in Essex.
  • Hertfordshire recorded the strongest new-build price growth among commuter counties, with a 3.5% increase from March 2025 to March 2026.
  • London's average new-build price fell by 1.5% over the same period.

New research suggests that demand for new-build homes in London is lower than in surrounding commuter counties. Analysis by UK Property Development indicates that 8.8% of new-build properties in London are sold subject to contract, compared to 27.6% in Essex.

Hertfordshire recorded the second-highest level of demand at 23.7%, followed by Surrey at 21.2%, Kent at 18.3%, Buckinghamshire at 17.5%, and Berkshire at 17.4%. Buyers may be looking beyond the capital for more space and better value for money.

Hertfordshire also saw the strongest new-build price growth among the commuter counties, with average prices increasing by 3.5% from £592,163 in March 2025 to £612,781 in March 2026. In contrast, London's average new-build price fell by 1.5% from £512,376 to £504,870 during the same period.

Andy Morrison, director of UK Property Development, noted that buyers are prioritising larger homes, access to green space, local amenities, and a sense of community, while still being able to commute to London.

Why this matters: The shift in buyer priorities could influence future housing development and affordability pressures in commuter markets.

What this means for you: If you are considering buying a new-build home, properties in commuter counties may offer greater value and space compared to London, with prices potentially rising in these areas.

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