The average price of a new build home in Scotland has risen by 3.8% year on year, climbing from £351,414 to £364,912 according to Propertymark’s Winter 2025/26 New Builds Pricing Report.
Propertymark’s latest analysis of instruction prices highlights significant regional variation across the UK, with some areas recording notable growth while others see sharp declines.
In contrast to Scotland’s uplift, London has experienced a substantial fall. In January, the average price of a new build property across inner and outer London dropped 13.3% year on year, from £897,135 to £777,688 – a reduction of £119,447.
The report says that shifts in pricing do not necessarily reflect changes in buyer demand but may instead point to alterations in the type, size or location of homes currently being delivered, as well as planning complexity, materials and labour costs.
REGIONAL VARIATIONS
Across London, around 18,500 homes are expected to be completed by the end of 2026, with a further 15,000 due by the end of 2027.
Combined, this falls significantly short of the UK Government’s target of 176,000 new dwellings across the capital within two years, a supply gap that could influence pricing trends over the next 12 months.
Elsewhere, the North East recorded one of the strongest annual uplifts, with average new build prices rising by £25,434 to £344,772. Yorkshire and Humberside saw an increase of £12,114 to £315,770, while the South East climbed by £9,755 to £551,238. The West Midlands also recorded growth, up £9,173 to £379,784.
ANNUAL DECLINES
However, several regions saw annual declines. Wales fell by £8,754 to £344,332, the East Midlands dropped £14,450 to £350,680, and the East of England declined £12,437 to £481,221.
The South West also edged down by £6,020 to £426,137. Northern Ireland was excluded from this quarter’s report due to insufficient data volumes.
The report also points to wider lifestyle and infrastructure trends influencing demand patterns, with advances in technology and improved transport links encouraging buyers to reassess location preferences and consider more outlying regions.
REAL-WORLD DEMAND
Nathan Emerson (main picture, inset), CEO of Propertymark, says: “Across the entire UK, we sit in a phase where both the UK Government and all devolved administrations are extremely keen to achieve their own housing targets.
“Looking at England, there is a drive to build 1.5. million homes across the current parliamentary term. However, current output is not keeping pace with this initial ambition and real-world demand for such dwellings continues to mount up.
“Access to high-quality and sustainable housing is the fundamental baseline needed for communities to flourish and for regional economies to function well.
“As the population continues to grow across the entire UK, there must be capacity at all levels to deliver new housing stock, from conception to completion.”
