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New Build Housing Listings Hit Lowest Level Since 2017

The number of new build housing developments listed for sale has fallen to its lowest level since 2017, according to data from property portal Rightmove. The figures, which exclude retirement schemes, come at a time when the UK government has set a target to deliver 1.5 million homes during the current Parliament.

Rightmove did not provide specific numerical data, stating that its intention was to highlight the downward trend rather than share absolute figures. The decline in new build listings coincides with subdued sales activity in the housing market, with several factors constraining both supply and demand.

Colleen Babcock, a property expert at Rightmove, noted that despite a historically high number of available homes for sale, there remains a long-term shortage of affordable homes in suitable locations. The need for more homes to support people at every stage of the moving journey, from first-time buyers to downsizers, was emphasised.

Steve Mariner, Group Sales and Marketing Director of Barratt Redrow, attributed the fall in new build listings to increasing regulatory costs, low customer confidence, higher borrowing costs, and wider economic uncertainty. Mariner also pointed out that, for the first time in decades, there is currently no government support scheme to help people in England purchase their first home.

Rightmove has called on the Government to address these issues in the upcoming Autumn Budget. The portal has proposed removing stamp duty for first-time buyers on both new builds and resale properties, as well as increasing investment in affordable housing and providing targeted support for first-time buyers. The challenges for first-time buyers are not limited to availability, with stamp duty costs also deterring homeowners from moving and further constraining market activity.

Nathan Emerson, Chief Executive of Propertymark, highlighted the importance of ensuring sufficient housing for a growing population. He stated that while ambitious housing targets have been set, building new homes is only part of the challenge, and thriving communities also require investment in jobs, education, healthcare, transport, policing, robust supply chains, a skilled workforce, and a stable economy.

The reduction in new build listings represents a significant constraint on housing supply at a time when government policy is focused on increasing homebuilding. The data suggests that developers are scaling back projects amid economic and regulatory pressures, which could impact long-term housing delivery targets.