Just a fraction of newly built homes in England are making it to the open sales market, limiting access for traditional buyers and first-time purchasers.
Analysis of estate agent CRM data alongside official figures suggests that, of around 200,000 homes delivered across 2024/25, only 21,261 were available via the open market.
The majority of new homes are instead being channelled into build-to-rent schemes, developer-led sales and affordable housing routes such as shared ownership, significantly reducing visibility for buyers using estate agents.
London shows the most extreme imbalance, with just 2% of new-build homes reaching the open market, highlighting a growing shift in how housing supply is distributed.
RENTING MORE COMMON
Riccardo Iannucci-Dawson (main picture, inset), Chief Executive Officer at Alto, says: “People see homes being built and assume they’ll be available to buy, but the reality is many never reach the market buyers actually interact with day to day.
“This isn’t just about how many homes are built, but how many are accessible – and in some areas, that’s a small fraction of total supply.
“At the same time, the UK is starting to mirror parts of Europe, like France and Germany, where long-term renting is more common and large-scale rental developments form a bigger part of the housing mix. Over time, that may lead to Britain becoming more of a nation of renters.”
NOT ENOUGH HOMES
Separate research of 2,000 adults found 44% believe there are not enough homes available to buy, while 46% said new-build developments in their area are primarily targeted at investors and landlords rather than owner-occupiers.
Affordability pressures remain a key barrier, with 60% citing high house prices and 58% pointing to insufficient income as reasons they expect to miss out on homeownership. More than a third (36%) believe they will never own a home.
Despite this, demand for ownership remains strong. Only 15% said they prefer renting, while 57% believe it is the government’s responsibility to ensure adequate housing supply.
TIGHTER RESTRICTIONS
Concerns over investor activity are also rising, with 61% of respondents saying landlords and property investors are crowding out first-time buyers. Nearly half (48%) would support tighter restrictions on investors purchasing new homes.
Iannucci-Dawson adds: “It is clear the appetite to own a home is still there, but the opportunity doesn’t mirror their eagerness.
“The open market is often estate agent led and follows the traditional path of the buyer finding a property through an agent.
“It is clear to see a large proportion of homes aren’t making it to the ‘typical’ sales stream because it removes the opportunity for so many to get on the ladder.”
