New-build housing developments reach lowest level since 2017

The number of new-build housing developments coming to market reached its lowest level since January 2017, according to analysis of listings on the property platform. The platform examined whole developments rather than individual homes or plots and compared the May total with records kept for more than ten years.

Across the wider market of new and existing homes, the number of properties for sale rose 85 percent compared with four years earlier.

Government targets and industry data The government has set a target of building 1.5 million homes during the current parliament to increase affordable supply for first-time buyers. The platform's data indicated the pace of new developments is not on track to meet that goal despite recent planning reforms.

Housebuilders must include a set proportion of affordable units in new projects under existing government quotas.

Construction sector conditions Survey data showed the UK construction industry has been in decline for roughly 18 months. The S&P Global UK construction PMI recorded its fastest drop in activity in May since the height of the Covid-19 pandemic, with firms citing project delays, investment caution, and reduced customer budgets.

The UK's largest housebuilder called for more targeted support for first-time buyers. Its sales and marketing director said the government had made progress on planning changes that unlock land for development. The platform recommended removing stamp duty for first-time buyers on both new-build and resale homes.

Relief on higher-priced properties ended last year, increasing the tax burden for some purchasers.