New research from Property Inspect suggests that while national demand for new-build homes dipped slightly in the second quarter of 2025 strong performances in several south coast cities helped stabilise the overall market.
The firm’s Q2 2025 New-Build Demand Index, which measures demand by calculating the proportion of new-build listings marked as “sold subject to contract” (SSTC) across Britain, found that national demand currently stands at 18.2%.
This represents a marginal quarterly drop of 0.2 percentage points and a year-on-year decline of 1.7 percentage points.
Despite the slight national fall, a number of urban markets are bucking the trend – particularly on the south coast.
NEW-BUILD DEMAND
Southampton recorded the highest level of new-build demand among major British cities, with 35% of listings SSTC. Portsmouth followed closely at 28%, with Sheffield (20.6%), Glasgow (19.5%), and Bristol (19.1%) rounding out the top five.
In contrast, demand was weakest in Swansea (1.1%), Liverpool (3%), and Aberdeen (4.3%), underlining the wide regional variation in buyer appetite for new homes.
Portsmouth led the way in terms of quarterly growth, with demand rising by 16.2% since Q1 2025. Glasgow (+6.6%), Cardiff (+6.3%), Southampton (+6.2%), and Birmingham (+2%) also recorded positive quarterly momentum.
However, not all cities fared as well. Aberdeen saw the sharpest quarterly decline at -10%, followed by Bournemouth (-7.5%) and Newport (-6%).
Glasgow topped the list for annual demand growth, with a 14% increase in SSTC listings since Q2 2024. Portsmouth also performed strongly with a 13.7% rise, followed by more modest increases in Edinburgh (+2.4%), Aberdeen (+1.7%), and Newcastle (+0.9%).
However, 14 of the 20 cities analysed saw annual demand decline, with Bournemouth (-21.2%), Newport (-17.5%), and Plymouth (-13.1%) posting the largest falls.
STEADY PERFORMANCE
Siân Hemming-Metcalfe, Operations Director at Property Inspect, says:“New-build demand has remained static on a quarterly basis, but activity in many major cities highlights that buyers are still transacting, even in the face of higher price points.
“This steady performance demonstrates a clear recognition among purchasers of the long-term value that new, modern homes can offer, particularly in urban centres where demand for high-quality, energy-efficient living spaces remains strong.”
NEW-BUILD BENEFITS
And she adds: “Despite wider economic caution, many buyers continue to prioritise the benefits of new-build properties, from lower maintenance requirements and enhanced energy performance to contemporary layouts and developer guarantees.
“The willingness to pay a premium in these city markets reflects growing confidence in the product and a clear appetite for homes that meet today’s lifestyle and sustainability expectations.
“This trend is a positive signal for the sector, showing that buyers are not simply price-sensitive, they are discerning. Where the offering aligns with modern needs, demand remains resilient.
“As affordability continues to gradually improve and sentiment strengthens, the new-build market, particularly in key city locations, looks well-placed to capitalise on renewed buyer interest.”
