The price of a new build home has plummeted in parts of Britain in the last year, according to new figures, with some areas outside of London seeing falls of around £40,000.
Across the country, the average new listing price of a new build in July was £489,917, according to Propertymark, the membership body for estate agents.
This represents a £19,115 dip when compared to the £509,032 recorded in July last year.
Certain locations are seeing far bigger falls, however. Average prices for new new build properties marketed in the East Midlands dipped by £43,078 between July 2024 and this year.
The average price of a new build coming to market in the East Midlands was £360,193 as of July. The area includes cities such as Derby and Nottingham.
Elsewhere, the North East saw new listings of new builds fall in value by £37,123 on average year-on-year, and in the South West they fell by £30,826.
The average price of new builds coming to market in the North East in July was £317,989 while in the South West it was £442,397.
London saw the biggest fall year-on-year, amid a wider slump in the capital's property market.
In July this year the average new build was on sale for £845,866, which is £122,770 lower than a year earlier.
This represents an opportunity for buyers to snap up properties cheaply.
'Any house price decreases often represent a positive opportunity for aspiring homeowners to progress with their ambitions regarding ownership,' said Nathan Emerson, chief executive at Propertymark.
However, many regions have also seen price increases. The East of England saw a £20,763 increase in the price of new builds instructed in July compared to last year. The average price is now £523,714 in the region.
This was followed by the West Midlands where the average price of newbuild properties rose by £13,182 to £384,443.
Why are new build prices falling?
Experts suggest that there is a growing disconnect between what developers charge for new build homes, and what buyers are willing to pay - meaning the homes end up being discounted.
Jonathan Hopper, chief executive of Garrington Property Finders, said: 'There are lots of finished units that are being left empty with buyers not prepared to pay the listed asking prices - though some new sites are faring better than others.
'A lot of traditional sales tactics used by developers such as stamp duty assistance, carpets, curtains and other incentives are not masking the fact that many new builds seem overpriced in the current market.'
Some new build homes might be suffering from having the leasehold tag. Most new build flats are leasehold, as well as some houses on managed estates..
Leasehold properties have picked up stigma in recent years, particularly with cladding issues and potential leasehold reform.
'Some mortgage lenders are more restrictive when it comes to leasehold, particularly those that have high service charges or ground rents,' says Hopper.
'And some conveyancing solicitors refuse to even take on leasehold homes because it takes too much of their time and comes with so much personal indemnity risk, which just makes it commercially unviable for some firms.'
| Region | Average price in July 2025 | Year-on-year change in price since July 2024 |
|---|---|---|
| Scotland | £367,786.00 | £3,726.00 |
| Northern Ireland | £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 (inner 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 |
| Source: Propertymark |
How to negotiate the price down
Hopper says buyers need to be careful when assessing price, and also to not be afraid of haggling.
He also says they should avoid being taken in by incentives, such as free legal fees or a nicer kitchen.
'New home developers are always keen to preserve their price margins and they are nervous about letting one unit go at a cut price, hence why they prefer to offer incentives, as opposed to lowering prices,' Hopper says.
'From a buyer's point of view, look at prices in the local area and be wary of overpaying as often new builds are sold at a big premium.
'Be careful about paying the full price and don’t be afraid to offer under the asking price. It's often possible to achieve a five to six per cent discount alongside the extra incentives developers will offer on top.'
How strong your negotiating hand is can also depend on the time of the year and how many plots remain in a certain development.
'Negotiating can be dependent on what time of the financial year you are able to exchange or complete by, says Hopper.
'Developers have targets to hit so if you can exchange or complete by the end of a given financial quarter or year, there might be a little wiggle room when it comes to price.
'Equally if you are buying one of the last few remaining units on a particular site, they may want to wrap up the site and save on the operational cost involved, so may be more prepared to strike a deal.'
