The number of new-build homes coming to the market in England has fallen to its lowest point since 2017, a development that jeopardizes the Labour government's target of constructing 1.5 million new homes by 2030. This goal necessitates building 300,000 homes annually, but recent estimates suggest that only 190,602 homes were completed last year, according to data analyzed by Rightmove and Savills.
The downturn in new listings could lead to increased property prices as demand outstrips supply, a situation that poses difficulties for first-time buyers. Rightmove's analysis, which examined new developments listed on its portal over a decade, excluded retirement homes. The findings indicate a shortage of affordable new-builds in suitable locations.
Rising mortgage rates and general affordability remain significant hurdles for many prospective homeowners, particularly those entering the market for the first time. The average two-year fixed mortgage rate has climbed to 4.92 percent, a notable increase from 3.53 percent four years ago. This has been further exacerbated by the end of the stamp duty holiday, which saw the threshold for first-time buyers paying the tax lowered from £425,000 to £300,000 in April 2025.
To address these challenges, Rightmove has advocated for the abolition of stamp duty for first-time buyers on both new-build and resale properties, alongside the introduction of a Help to Buy-style scheme. The property portal also suggested that the government should offer greater support to developers and increase investment in affordable housing provision.
Developers are currently contending with increased building costs, affordability requirements, and higher interest rates. Alex Slater, Rightmove's director of new homes, emphasized the critical role of first-time buyers in the housing market and the growing difficulty they face in entering it. He called for comprehensive reforms, including stamp duty adjustments and enhanced investment in affordable housing, to assist this demographic.
Steve Mariner, group sales and marketing director at Barratt Redrow, echoed these sentiments, proposing a new scheme where developers and the government collaborate to support first-time buyers. He highlighted the absence of government support for first-time buyers in England for the first time in decades, at a time when it is most needed.
In response to market conditions, some developers are reportedly shifting their focus towards more affluent buyers or larger families, as many first-time buyers are priced out. While housebuilders often offer incentives, such as covering stamp duty costs, to attract first-time buyers, the overall market trends present a significant challenge.
Savills projected that Labour could miss its five-year housing target by 662,500 homes, forecasting completion of 837,500 by 2030. The firm noted a 4.1 percent decrease in new-build property completions in 2025, with building costs rising by 17.5 percent over the past four years, partly due to supply chain disruptions.
Nathan Emerson, chief executive of Propertymark, stressed that building new homes is only one component of ensuring housing accessibility. He stated that thriving communities require investment in infrastructure, employment, education, healthcare, and transportation, alongside stable supply chains, a skilled workforce, and a sound economy.