New-build buyer demand across Britain showed a broadly steady pattern between the first and second quarters of 2025, with some major cities displaying robust activity despite the challenges posed by higher price points. According to data from Property Inspect’s Q2 New-Build Demand Index, the proportion of new-build homes marked as sold subject to contract (SSTC) remained largely unchanged nationally, standing at 18.2%. This represents a slight quarterly decline of 0.2% and a 1.7% drop compared to the same period in 2024. However, several southern coastal cities continued to lead the market, highlighting ongoing buyer interest in specific urban locations.

Among the key urban hotspots, Southampton topped the demand rankings with an impressive 35% of new-build homes under offer or sold. Portsmouth followed with 28%, while Sheffield, Glasgow, and Bristol recorded solid figures of 20.6%, 19.5%, and 19.1% respectively. In contrast, weaker demand was witnessed in Swansea, where only 1.1% of new-build listings were under offer, alongside Liverpool and Aberdeen, which posted 3% and 4.3%, respectively. These regional disparities illustrate a degree of divergence within the market, with some areas experiencing notable quarterly growth while others faced declines.

Portsmouth saw the most significant uplift in new-build demand compared to the previous quarter, rising by 16.2%. Glasgow (+6.6%), Cardiff (+6.3%), Southampton (+6.2%), and Birmingham (+2%) also reported increases. Conversely, Aberdeen experienced the steepest fall at -10%, with Bournemouth and Newport also facing declines. On an annual basis, Glasgow led with a 14% rise in demand compared to Q2 2024, closely followed by Portsmouth with a 13.7% increase. Meanwhile, cities such as Edinburgh, Aberdeen, and Newcastle saw modest gains year-on-year, indicating pockets of resilience amid wider market softness.

Industry voices note that despite broader economic caution and affordability challenges, buyers remain attracted to the unique benefits of new-build homes. Siân Hemming-Metcalfe, operations director at Property Inspect, emphasized the enduring appeal of modern, energy-efficient properties that offer lower maintenance and contemporary layouts. She suggested that buyers’ willingness to pay a premium for these homes reflects confidence in their long-term value, particularly in urban centres where demand for sustainable living spaces is strong. This discerning buyer mentality underscores a market that is not merely price-sensitive but motivated by quality and lifestyle considerations.

Further context reveals that the appeal of new-build properties has broadened significantly in recent years. Mortgage Advice Bureau data from 2024 shows a surge in demand across all age groups, with nearly half of homebuyers expressing an interest in new-build homes—a 21% increase since 2022. This rise is particularly pronounced among first-time buyers, whose interest has grown by 20%. Such demographic trends underpin the market’s stability and provide a foundation for sustained demand in certain segments.

From a developer perspective, optimism appears to be growing. A recent survey found that 61% of property developers expect an improvement in the residential property market this year. Factors supporting this positive outlook include government housebuilding targets, planning reforms, and stamp duty relief measures. These policy drivers could enhance market capacity and buyer affordability, further buoying new-build activity.

It is worth noting that some reports have highlighted slight variations in the extent of demand growth. For instance, other industry sources reported a modest overall increase of 0.7% in new-build buyer demand for Q2 2025, with Southampton emerging as the hottest market, claiming 45% of new-build listings under offer or sold, followed closely by Bristol and Bournemouth. While these figures differ somewhat from Property Inspect’s data, they corroborate the broader trend of sustained interest concentrated in specific urban areas.

In summary, while new-build demand across Britain has remained relatively flat on a quarterly basis, strong buyer engagement in key cities, especially along the south coast, signals resilience in the sector. The combination of demographic shifts, quality-driven purchaser preferences, and favorable developer sentiment paints a cautiously optimistic picture for the new-build housing market as it navigates economic uncertainties and evolving buyer expectations.

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Source: Noah Wire Services