New-Build Housing Developments Hit Lowest Level in a Decade

By the Editorial Team · Sunday, July 12, 2026

The supply of new-build homes for sale in the UK has dropped to its lowest point since 2017, despite an overall increase in property listings. This decline, coupled with a slowdown in construction activity and rising costs, threatens the government's target to build 1.5 million homes and intensifies calls for policy changes to improve housing affordability.

The number of new-build housing developments in the UK has fallen to its lowest level in nearly a decade, according to recent analysis, prompting calls for measures to address a persistent shortage of affordable homes. Data from Rightmove, which has monitored property listings for over ten years, indicates that May saw fewer new-build homes available for sale than any month since January 2017.

While the overall property market—including both new and existing homes—has seen an 85% increase in listings compared to four years ago, the decline in new-build developments raises concerns about housing supply. Colleen Babcock, a property expert at Rightmove, highlighted the ongoing shortfall of affordable housing, emphasizing the need for more construction to assist individuals at different stages of their housing journey.

Builders in the UK are obligated under government quotas to allocate a portion of new developments as affordable housing. The government has set a target to construct 1.5 million homes during the current parliamentary term to boost affordability for first-time buyers. However, Rightmove’s data suggests that the pace of new homebuilding is insufficient to meet this goal, despite recent reforms intended to simplify planning processes and accelerate development.

The construction sector has also experienced a downturn over the past 18 months. The S&P Global UK Construction Purchasing Managers’ Index (PMI) reported that activity in May contracted at the fastest rate since the height of the COVID-19 pandemic. Industry participants cited delays in projects, reluctance to invest, and reduced customer budgets as contributing factors to the slowdown.

Major housebuilder Barratt Redrow echoed concerns about market challenges. Sales and marketing director Steve Mariner acknowledged government efforts to reform the planning system and unlock additional land but noted that rising regulatory costs are inhibiting new homebuilding. He also pointed to low buyer confidence, increased borrowing costs, and broader economic uncertainties as obstacles for first-time buyers entering the market.

In response to these challenges, Rightmove advocates for the removal of stamp duty on new-build and resale homes purchased by first-time buyers, arguing this would improve affordability. Currently, first-time buyers do not pay stamp duty on properties valued up to £300,000 and can claim relief on homes up to £500,000. However, recent changes abolished stamp duty relief on higher-value homes, potentially increasing the tax burden for some buyers.

A spokeswoman for the Ministry of Housing, Communities and Local Government stated that the government is committed to increasing housing supply and expects production to accelerate in the latter part of the parliamentary term as reforms take effect. She noted a 15% rise in new housing completions compared to the previous year and highlighted planning system changes designed to aid developers amid ongoing geopolitical challenges.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.