One in eight new-build homes in England has been on the market for more than six months as developers resist cutting asking prices, research from Octane Capital suggests.
The specialist lender analysed more than 1,100 live new-build listings and found that 25% had been marketed for over three months, while 13% had been available for more than six months.
A further 4% had remained on the market for over a year.
Applied to the estimated 34,831 new-build homes currently listed across England, Octane Capital calculates that approximately 4,400 have spent more than six months awaiting a buyer.
DEVELOPERS RESIST DISCOUNTING
Despite longer selling periods, only 14.5% of the new-build listings analysed had undergone an asking-price reduction.
Octane Capital says this indicates that developers are prioritising scheme values and profitability over achieving a faster sale.
The strategy can protect gross development value but leaves capital tied up in completed schemes, potentially delaying investment in future projects.
EXIT FINANCE GAINS IMPORTANCE
Developer exit finance allows housebuilders to refinance completed developments, repay their original development facilities and release working capital while continuing to market unsold units.
The findings follow Octane Capital’s Developer Sentiment Survey, which found that 57% of developers were less likely to begin new schemes during 2026. Some 83% expected to use specialist finance to navigate current market conditions.
‘DISCOUNTING IS THE LAST OPTION’
Jonathan Samuels (main picture, inset), CEO of Octane Capital, says: “The immediate assumption is often that if new-build homes aren’t selling quickly, developers will simply reduce prices, but in reality that’s often the last option they want to consider.
“Every discount comes straight off the bottom line and, after several years of planning, construction and rising build costs, protecting profitability has become more important than ever.
“Many developers would rather give themselves additional time to sell than unnecessarily erode the value of a scheme, particularly where market conditions remain relatively stable and buyer demand is still there.
“That’s why developer exit finance has become increasingly important. It provides developers with the breathing space to refinance completed schemes, release capital and continue selling without the pressure of having to accept lower offers simply to satisfy an approaching loan maturity.
“Ultimately, it’s about giving developers greater control over the final stage of a project, helping them maximise value whilst putting themselves in a stronger position to move on to their next opportunity.”
