Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Housebuilders Maintain Prices Despite Delays in New-Build Sales

Many UK housebuilders are resisting calls to cut prices, even as a notable share of new-build homes remain unsold for extended periods. Analysis by specialist lender Octane Capital shows that developers are prioritising profitability over rapid sales.

According to the report, around one in eight new-build properties in England have not sold after six months on the market. A quarter of new-build homes have been listed for more than three months, with 13% unsold for over six months and 4% remaining on the market for more than a year.

Based on England’s estimated 34,831 new-build homes currently for sale, this equates to approximately 4,400 completed properties unsold after six months. Despite these figures, only 14.5% of all new-build homes currently for sale have seen an asking price reduction.

The analysis indicates that many developers prefer to allow more time for sales rather than reduce prices, aiming to protect the value of their developments. The report also notes that developer ‘exit finance’ is becoming increasingly important, as it allows developers to refinance completed schemes, release capital, and continue selling without the need to accept lower offers due to loan deadlines.

These trends are relevant for letting agents and inventory clerks monitoring the new-build sector, as they may impact the availability and pricing of properties entering the rental market.