Leading locations for new build home sales revealed as major cities face major shortages
Smaller towns have emerged as the UK’s leading locations for new build home sales, while hundreds of towns and many major cities continue to face significant shortages, according to a recent analysis by buy-to-let insurance specialist Alan Boswell Group.
The study found that Banwell in North Somerset recorded the highest proportion of new build transactions nationwide between 2023 and 2024. Of the 275 properties sold in the village, 180 were new builds, representing 65.45% of all sales. Swanscombe in Kent followed, with 394 new build sales out of 711 transactions (55.41%), while Arundel in West Sussex saw 359 new builds among 766 sales (46.87%).
The research also reported a median price of £330,000 for new build homes, compared to £272,000 for existing properties. Regional trends showed Northern Ireland with a 13.48% share of new build sales in 2024, and Scotland at 10.57% across 2023–2024.
Despite these pockets of growth, the report highlighted that 207 towns and cities had no new build sales during the period. Larger locations such as Twickenham, Southsea, and Hebden Bridge were among those with a 0% new build share, suggesting factors like planning restrictions or a saturated market for older homes may be limiting development.
In the UK’s largest cities, new build supply remains limited. Derby ranked highest among major urban areas but only 151st overall, with a 16.41% new build share. Liverpool and Manchester reported 12.59% and 11.03% respectively, underscoring the gap between demand and supply in metropolitan markets.
London ranked 408th out of 1,101 local areas for new build share, with 8.62% of transactions involving new properties between 2023 and 2024. However, the capital still saw 9,836 new build sales, supported by regeneration projects in areas such as Battersea and Stratford.
“The UK’s housing demand remains intense, especially in large cities where new build construction often can’t keep up with population growth,” said Heath Alexander-Bew, spokesperson at Alan Boswell Group. “However, this data clearly shows that regional development hotspots, even in smaller towns like Banwell or Swanscombe, are filling that gap.
“For buyers, especially families or first-time homeowners, these areas represent opportunities to secure modern, energy-efficient homes in growing communities. The proportion of buyers moving into detached homes has grown from 25% to 32% over the past decade, highlighting a steady shift in preference toward more spacious living. In our study, detached properties made up 13.87% of all new build sales between 2023 and 2025, underlining their continued appeal.”
The report also examined the buy-to-let sector, noting that around 4.7 million properties are currently rented across the UK, making up one in five households. Buy-to-let lending increased by 12% year-on-year to £20.5 billion in 2024, with average two-year fixed rates at 4.3% for 75% loan-to-value mortgages as of early 2025.
Areas such as Milton Keynes (17.39%), East Riding of Yorkshire (17.05%), and Warwickshire (14.44%) were identified as regions where new build development is meeting demand. Detached homes made up 13.87% of new build sales from 2023 to 2025, while flats and maisonettes accounted for 11.21%, reflecting a range of options for buyers and investors.
For mortgage brokers, these findings highlight strong opportunities in regional hotspots where new build activity is high, especially for first-time buyers and investors. Brokers should focus on areas with growing supply and buyer demand, while also advising clients on challenges in cities with limited new build options. Staying informed on local market trends will help brokers better match clients with suitable mortgage products.
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