First-time buyers drive growth in London’s new build sector
Foxtons’ New Homes and Investments division recorded a 16.5% increase in new homes sold during the first half of 2025 compared to the same period last year, indicating that, despite wider reports of negative growth in the new homes sector, transaction volumes at the London-based estate agency continued to climb.
The total value of new homes sold by the company also rose by 2.2% in the first six months of 2025. First-time buyers represented the largest share of new build purchases, making up 58.5% of sales. Landlords accounted for 25.4%, while home movers comprised 16.1%.
Mortgage-financed buyers accounted for 72.6% of new home transactions, highlighting the ongoing need for mortgage brokers to guide clients and secure appropriate loan options in London’s competitive new-build market.
Cash buyers still played a notable role, representing 27.4% of activity. According to Foxtons, cash buyers can complete purchases in as little as 10 days, enabling landlords to acquire and let properties in time for the summer rental season.
The company said these results build on a strong performance in 2024 for its New Homes and Investments team.
“The London property market has continued to show why it is a great long-term investment over the first six months of the year,” said Joel Ellis-Duffy (pictured), new homes sales director at Foxtons.
“Looking forward, it’s reassuring to see that first-time buyers account for by far the largest proportion of our new homes activity and that a good proportion of homes are being sold off plan. It’s a positive indication for H2 that, now London buyers are benefitting from improvements to the mortgage market landscape, they are pushing on with their plans to purchase.
“We expect this trend to continue, particularly as the government recently stated its intention to ease lending criteria further to support buyers.”
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