UK Home Sales Hit Lowest
Since Financial Crisis

Sales of new-build homes in the UK have slumped to their weakest levels since the global financial crisis, according to new data from Savills. The figures form part of a warning to the Treasury that the much-expected house-building boom may face significant headwinds.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

What the Data Shows

• Over summer 2025, new-build sales averaged around 0.3 homes per week per outlet, compared with about 0.4 per outlet per week during the trough of 2007-08, and a long-term norm of about 0.7.

• The situation is most pronounced in the East and South East of England, where sales were as low as 0.25 homes per week per outlet.

• These numbers were shared with the Treasury as part of pre-Budget evidence, showing the slowdown is widespread across the industry.

Why this matters

• New-build sales are a key barometer of housing demand and the ability of builders to scale output. Weak sales suggest that supply alone will not deliver the Government’s hoped-for house-building boom.

• For the mortgage market, a subdued demand environment means fewer buyers and potentially weaker pricing power for lenders, which can feed into affordability pressures for first-time buyers and movers.

• From a wider economic perspective, house-building supports employment and local investment. If that sector slows, it can weigh on the broader UK economy.

What This Could Mean for Buyers, Remortgagers and Landlords

First-time buyers and move-up families

Demand remains muted and many potential buyers may wait for clearer signals on interest rates or Government incentives. This could mean more choice in some areas, but also less price momentum.

Remortgagers

Although this data concerns new-builds, a slower market may make lenders more cautious, potentially influencing re-mortgage pricing and criteria.

Buy-to-let landlords

Falling new-build sales may reflect wider demand weakness. For landlords, it highlights the need to plan for shifts in tenant demand and pricing as the market adjusts.

Context and Drivers

• Interest rates remain elevated, keeping borrowing costs high and squeezing affordability.

• Planning delays and supply-chain costs continue to limit builders’ capacity even where demand exists.

• Sentiment plays a role: news of weak sales can cause potential buyers to pause decisions.

• Policy outlook: the Treasury has been warned about the slump as it considers housing and fiscal policy measures for the coming months.

Key Numbers (verified)

• New-build sales: around 0.3 homes per week per outlet (summer 2025)

• Benchmark: 0.4 homes per outlet per week during the 2007-08 crisis

• Long-term norm: approximately 0.7 homes per outlet per week in the 2010s

As at 26 October 2025 London.

Why This Should Matter to You

If you’re exploring a home purchase or remortgage, this downturn underlines the importance of timing, affordability, and market awareness. Whether you’re a first-time buyer, mover or landlord, low sales volumes make it vital to:

• Secure the right rate and term for your needs.

• Understand how local supply conditions could affect your plans.

• Stay informed about potential policy or tax changes that may shift affordability.

If you’d like to understand what today’s moves could mean for you, speak to a qualified mortgage adviser at Mortgage One for a personalised review of your options and timing.

The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. For tailored advice specific to your circumstances, please contact Mortgage One directly.

FAQs

1. What does it mean that new-build sales are so low?
   It means fewer buyers are committing to newly built homes and that outlets are selling far below normal levels. For the mortgage market it signals weaker demand and tighter affordability conditions.

2. Does this slump mean house prices will fall?
   Not necessarily. Low sales may slow price growth, but supply levels, regional trends and affordability will determine whether prices fall or stabilise.

3. What should I consider if I’m buying now?
   Focus on securing a competitive mortgage rate and ensure you can afford repayments comfortably given current interest rates.

4. Will this affect first-time buyers more than others?
   Possibly – first-time buyers are often most affected by affordability pressures, though slower sales can mean more choice.

5. Does this impact remortgaging?
   Indirectly. While remortgages involve existing homes, a weak market can influence lender sentiment and product availability.