Off-plan sales of new homes in England and Wales have fallen to their lowest level in 12 years, according to new data from Hamptons, raising questions about the Government’s ability to meet its housebuilding targets.
Just 33% of new homes were sold before construction was complete in 2025, down from a peak of 49% a decade ago and the lowest share since 2013. The decline has been driven primarily by a shift in the type of properties being built, with flats now making up just 22% of new homes sold in 2025, down from 38% in 2016 and 54% in 2007.
Shift towards house-led development
David Fell, Lead Analyst at Hamptons, said the shift away from building flats towards houses, which are more likely to be sold after completion, has increasingly contributed to the downward trend. “This move towards lower-density, house-led development is likely to make it harder for the government to significantly ramp up housing delivery,” he said.
The trend mirrors broader challenges facing the UK property market, with regional variations becoming increasingly pronounced across different sectors.
Regional variations
Southern regions recorded the sharpest falls in off-plan sales over the past decade, while northern areas have maintained stronger performance. In 2025, 69% of flats in the North West were sold off-plan, the highest share of any region in England and Wales.
Despite flats being more likely than houses to sell off-plan, housebuilders have increasingly scaled back flat development in recent years. This strategic shift comes as the Government faces mounting pressure over its housing delivery targets and building regulations.
Buy-to-let investor decline
Fell noted that the decline in off-plan sales partly reflects the loss of buy-to-let investors from the market, who have traditionally been the largest buyers of off-plan homes. “Over the past decade, the share of new homes sold before construction is complete has fallen by around a third,” he said.
The analysis draws on Connells Group new homes data and Land Registry completions for England and Wales. The findings suggest that achieving the Government’s ambitious housebuilding targets may require a reconsideration of development density and housing mix, particularly given the current market dynamics favouring house construction over higher-density flat developments.