New-build property transactions decline to lowest level in a decade

The proportion of property transactions accounted for by the new-build sector hit its lowest level in a decade in 2020, research from Warwick Estates has found.

According to the property management firm, the Cladding External Wall System (EWS) form caused a bottleneck for new-build homebuyers.
 
Warwick Estates analysed data from the UK House Price Index on new-build sales levels as a percentage of all homes sold between 2010 and 2020.

These figures revealed that in 2010, new-build homes accounted for 9.6% of all sales. Disregarding a negligible decline of -0.2% from 2013 to 2014, new-build market share increased steadily and consistently to a high of 13% in 2019.
 
In 2020, however, the sector’s market share dropped to just 8.8% of all sales. Not only was this -4.2% annual decline the biggest drop in 10 years, but it also sunk the new-build sector’s market share to the lowest point of the decade.
 
With the exception of Northern Ireland, all regions of the UK have seen the proportion of property transactions attributed to the new-build sector fall in 2020, with the North East (-6.3%), East of England (-5.2%) and North West (-5%) the areas seeing the largest year-on-year declines.

“A huge level of buyer demand spurred by the stamp duty holiday has helped revive buyer demand but such unprecedented levels of market activity have seen resources stretched,” commented Warwick Estates COO, Bethan Griffiths.

“While homes are going under offer at an alarming rate, there have been substantial delays during the back end of the transaction process.”

Warwick Estates stated that on top of the problems for the market posed by COVID-19, the government’s introductions of the EWS certificate in 2019 was “handled clumsily”, with buyers and developers left waiting for months to have their properties inspected and certified by a small number of qualified inspectors.

Without the certification, homes cannot be purchased and buyers who had agreed mortgages in principle were unable to complete on their purchase until certification was granted – leading to the 4.2% decline in the number of transactions last year.

Griffiths continued: “For the new-build sector, the situation has been exacerbated by the requirement of an EWS form and the ability to obtain these has become extremely difficult, with delays of six months or more in the worst cases.

“Despite attempts to remedy the situation by removing the requirement on buildings of 18 metres or less, we’re yet to see any real headway being made and the issue continues to prove problematic for those operating within the industry.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


AI, finfluencers and the future of broking
The mortgage industry is evolving faster than ever. In this MoneyAge video, we examine the opportunities and challenges redefining the broker landscape, from AI-powered lending and changing customer expectations to housing affordability, property supply and the rise of financial influencers. Our guest from Chorley Building Society shares practical insights on what brokers need to do to stay relevant and thrive in a rapidly changing market.

Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget

NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.