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New-build property prices have fallen sharply in parts of the UK over the past year, with affordability concerns driving significant price corrections.
In the East Midlands, the average asking price for new-build instructions dropped by £43,078 between July 2024 and July 2025 — the steepest regional decline during the period. The North East followed closely, with prices falling by £37,123, while the South West saw a £30,826 dip in average new-build instruction prices year-on-year.
Across the UK, the average asking price for a new-build home now stands at £427,143, highlighting the ongoing affordability challenge for prospective buyers despite regional price reductions.
However, not all areas recorded declines. Several regions experienced year-on-year increases in new-build pricing. In the East of England, prices rose by £20,763 to reach an average of £523,714, while the West Midlands saw a £13,182 increase, with average prices now at £384,443.
The UK Government continues to address the supply side of the housing crisis, with the Planning and Infrastructure Bill aiming to deliver 1.5 million new homes before the next general election. Meanwhile, devolved administrations have also committed to ambitious housing targets to ensure new supply keeps pace with demand.
Average instruction price of new build properties and year on year change by individual region (Propertymark Quarterly Newbuilds Price Index).
| Jul-25 | Overall Prices | Year on Year Change Price |
| Scotland | £367,786.00 | £3,726.00 |
| Northern Ireland | £285,158.00 | -£1,949.00 |
| Wales | £338,222.00 | -£24,076.00 |
| East Midlands | £360,193.00 | -£43,078.00 |
| East of England | £523,714.00 | £20,763.00 |
| London (inner and outer London) | £845,866.00 | -£122,770.00 |
| North East | £317,989.00 | -£37,123.00 |
| North West | £364,838.00 | £26,116.00 |
| South East | £552,109.00 | -£20,530.00 |
| South West | £442,397.00 | -£30,826.00 |
| West Midlands | £384,443.00 | £13,182.00 |
| Yorkshire and Humberside | £342,998.00 | £10,401.00 |
Nathan Emerson, CEO at Propertymark, said: “Any house price decreases often represent a positive opportunity for aspiring homeowners to progress with their ambitions regarding ownership. We have witnessed a noteworthy mix of price fluctuations regarding new build properties in various areas across the UK. However, with many mortgage providers typically willing to lend around five times an annual income, there are still substantial challenges to overcome regarding potential affordability for many when looking at average prices regionally regarding new properties.
“Both the UK government and the devolved administrations have clear cut challenges ahead of them to help ensure house prices are realistic. It remains vital than an enhanced flow of new homes reach the market in the areas where they are needed and the prospect of purchasing a home remains a practical ambition for those who aspire to own a home.”
Government housebuilding support must go further to deliver new homes ambitions
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