New build housing developments have hit their lowest point in seven years, with listings plummeting across the UK, according to Rightmove's latest data. This significant drop – excluding retirement properties – raises serious questions about the Government's ambitious goal of delivering 1.5 million new homes by the end of its current Parliament.
Colleen Babcock, a property expert at Rightmove, says the market is hampered by a long-term shortage of affordable housing in the right locations. "There are still too many homes available but not enough that people can afford to buy or rent," she notes. This issue affects all stages of the moving process, from first-time buyers to downsizers.
Industry leaders point to regulatory costs, low customer confidence, higher borrowing costs, and economic uncertainty as key factors behind the decline in new build listings. Steve Mariner, Group Sales and Marketing Director at Barratt Redrow, highlights the removal of government support schemes for first-time buyers in England as a significant policy shift.
Nathan Emerson, Chief Executive of Propertymark, calls for investment in areas beyond housing to support thriving communities: "We need robust supply chains, a skilled workforce, and a stable economy to keep housing accessible for both buyers and renters."
The reduction in new build listings is a major constraint on housing supply at a time when government policy focuses on boosting homebuilding. This data suggests developers are scaling back projects due to economic headwinds and regulatory pressures, which could undermine long-term housing delivery targets and worsen the existing crisis.