Rising demand and limited supply continue to define the UK property market

Dil Bar Irshad | August 13, 2025 | International, Business | Follow on Google News

Rising demand and limited supply continue to define the UK property market, but in certain towns and cities, new build availability is quietly accelerating, creating fresh opportunities for buyers and investors alike.

New research by buy-to-let insurance experts at Alan Boswell Group, has analysed property sales across the UK from 2023 to 2024, revealing where the proportion of new build homes is highest. For landlords, developers, and buy-to-let investors, these new build hotspots may signal regions with strong long-term growth potential, and lower ongoing maintenance costs.

Key Findings:

• Despite being smaller areas, Banwell, Swanscombe, and Arundel recorded the highest proportion of new build sales in 2023–2024.
• The median price for new build homes is £330,000, compared to £272,000 for existing properties.
• Northern Ireland saw a 13.48% share of new build sales in 2024.
• Scotland recorded a 10.57% new build share across 2023–2024.

The UK’s New Build Hotspots Revealed:

1. Banwell, North Somerset

Topping the list is Banwell, a quiet village in North Somerset with a population of just over 3,000. Despite its modest size, it leads the nation in new build property concentration: out of 275 total sales in the area between 2023 and 2024, 180 were new builds. That’s an impressive 65.45% new build share, the highest proportion of any UK location, making Banwell a modern housing hotspot. Its growth signals rising demand in rural areas where buyers can escape city prices without sacrificing quality or space.

2. Swanscombe, Kent

Coming in second is Swanscombe in Kent, another small town experiencing a construction boom. With 394 new builds sold out of 711 total transactions, it boasts a 55.41% new build share. Thanks to its proximity to London and lower property prices, Swanscombe offers a realistic alternative for those seeking a new build lifestyle near the capital without the hefty city price tag, making it ideal for both first-time buyers and landlords seeking rental demand near the commuter belt.

3. Arundel, West Sussex

Third place goes to Arundel, a picturesque town nestled in the South Downs. Known for its historic charm and medieval castle, it may come as a surprise that 359 new builds were sold out of 766 total transactions, a 46.87% new build share. While old properties still dominate the landscape, there’s clearly an appetite for modern alternatives, particularly from those relocating from urban areas. Its proximity to coastal hubs like Worthing and Portsmouth adds to its appeal.

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The New Build Blackspots

At the other end of the scale, 207 towns and cities across the UK recorded 0% new build share in 2023–24, meaning no new build homes were sold at all. While some of these locations are small villages with little demand for expansion, others are surprisingly large and well-known.

Among them:

• Twickenham, Greater London – 1,668 homes sold, 0 new builds
• Southsea, Portsmouth – 2,029 homes sold, 0 new builds
• Hebden Bridge, West Yorkshire – 463 homes sold, 0 new builds

These figures suggest that heritage protection, planning constraints, or simply a saturated old-build market are preventing modern development in certain areas, posing challenges for buyers prioritising energy efficiency or accessibility.

What about the big cities? Low proportion of new builds despite high demand

When focusing on just the UK’s most populated cities, new builds are surprisingly scarce in comparison. Despite strong demand, most urban centres are struggling to keep pace with construction.

• Derby ranks highest among large cities but only 151st overall, with 1,692 new builds sold out of 10,312 transactions, a modest 16.41% share.
• Liverpool, known for its cultural heritage and regeneration efforts, saw 2,602 new build sales out of 20,663 (12.59%).
• Manchester, a key industrial and economic hub, recorded 3,041 new builds sold from 27,582 total (11.03%).

These figures highlight how supply is struggling to meet demand in growing cities, a trend that could drive property prices even higher.

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London’s surprising middle ground

London ranks 408th out of 1,101 local areas in the UK for new build share, placing it squarely in the middle of the pack. But among the UK’s largest cities, it comes 10th, with a new build sh