The proportion of new homes sold before construction was completed across England and Wales has fallen to its lowest level in more than a decade, according to analysis by property firm Hamptons. In 2025, just 33% of new homes were sold off-plan, down from a recent peak of 49% in 2016 and the lowest share since 2013.
Regional variations in off-plan sales
Southern regions have experienced sharp declines in off-plan sales, while northern areas have fared comparatively better. The research, based on Hamptons’ off-plan sales index using data from parent company Connells Group and Land Registry completions, highlights significant geographical differences.
Impact of stamp duty surcharge
Hamptons attributed the fall partly to the second-home stamp duty surcharge, which has reduced demand from buy-to-let investors, particularly in southern markets. Traditionally, buy-to-let investors have dominated off-plan purchases, so their retreat has disproportionately affected house builders’ early sales.
Changing trends in the mix of homes being built have further reduced the overall proportion of new homes sold off-plan. Flat developments have been scaled back, and flats continue to be more likely than any other type of new home to be sold off-plan, reflecting their popularity with investors and first-time buyers who are less constrained by timescales and housing chains.
Flats dominate off-plan sales
In 2025, more than half (55%) of flats across England and Wales were sold before construction was completed. The highest proportion was recorded in the north-west of England, where 69% of flats were sold off-plan, driven by strong and sustained investor appetite. In London, 65% of flats were sold off-plan last year.
House sales less common off-plan
Off-plan house sales tend to be less common. Yorkshire and the Humber recorded the highest share of new houses sold off-plan (29%) last year, compared with around 15% in London.
Expert commentary
David Fell, lead analyst at Hamptons, said: “Over the past decade, the share of new homes sold before construction is complete has fallen by around a third. This partly reflects the loss of buy-to-let investors from the market, who have traditionally been the largest buyers of off-plan homes. However, the shift away from building flats towards houses, which are more likely to be sold after they’re finished and ready to move into, has increasingly contributed to the downward trend.”
He added: “House builders are increasingly focused on protecting margins, which has favoured faster-selling suburban schemes. By contrast, profits on slower-selling, high-density sites have been eroded, or in some cases, wiped out entirely by rising finance costs. In a higher inflation, higher interest-rate world, off-plan sales have rarely been more valuable. The cash they generate allows house builders to pay down expensive development finance earlier and help offset the substantial upfront costs of materials and labour. Many of the materials needed to build new homes are highly energy intensive, meaning their costs have risen far faster than wider inflation.”
