New-build property costs have fallen sharply in components of the UK over the previous yr, with affordability considerations driving vital worth corrections.
Within the East Midlands, the common asking worth for new-build directions dropped by £43,078 between July 2024 and July 2025 — the steepest regional decline through the interval. The North East adopted intently, with costs falling by £37,123, whereas the South West noticed a £30,826 dip in common new-build instruction costs year-on-year.
Throughout the UK, the common asking worth for a new-build dwelling now stands at £427,143, highlighting the continuing affordability problem for potential consumers regardless of regional worth reductions.
Nevertheless, not all areas recorded declines. A number of areas skilled year-on-year will increase in new-build pricing. Within the East of England, costs rose by £20,763 to succeed in a mean of £523,714, whereas the West Midlands noticed a £13,182 enhance, with common costs now at £384,443.
The UK Authorities continues to handle the provision aspect of the housing disaster, with the Planning and Infrastructure Invoice aiming to ship 1.5 million new houses earlier than the subsequent common election. In the meantime, devolved administrations have additionally dedicated to formidable housing targets to make sure new provide retains tempo with demand.
Common instruction worth of recent construct properties and yr on yr change by particular person area (Propertymark Quarterly Newbuilds Value Index).
| Jul-25 | General Costs | Yr on Yr Change Value |
| Scotland | £367,786.00 | £3,726.00 |
| Northern Eire | £285,158.00 | -£1,949.00 |
| Wales | £338,222.00 | -£24,076.00 |
| East Midlands | £360,193.00 | -£43,078.00 |
| East of England | £523,714.00 | £20,763.00 |
| London (interior and outer London) | £845,866.00 | -£122,770.00 |
| North East | £317,989.00 | -£37,123.00 |
| North West | £364,838.00 | £26,116.00 |
| South East | £552,109.00 | -£20,530.00 |
| South West | £442,397.00 | -£30,826.00 |
| West Midlands | £384,443.00 | £13,182.00 |
| Yorkshire and Humberside | £342,998.00 | £10,401.00 |
Nathan Emerson, CEO at Propertymark, mentioned: “Any home worth decreases typically signify a optimistic alternative for aspiring owners to progress with their ambitions relating to possession. We have now witnessed a noteworthy mixture of worth fluctuations relating to new construct properties in numerous areas throughout the UK. Nevertheless, with many mortgage suppliers usually keen to lend round 5 instances an annual revenue, there are nonetheless substantial challenges to beat relating to potential affordability for a lot of when taking a look at common costs regionally relating to new properties.
“Each the UK authorities and the devolved administrations have clear minimize challenges forward of them to assist guarantee home costs are real looking. It stays very important than an enhanced move of recent houses attain the market within the areas the place they’re wanted and the prospect of buying a house stays a sensible ambition for individuals who aspire to personal a house.”
Authorities housebuilding assist should go additional to ship new houses ambitions
