Off-Plan Property Sales Hit 12-Year Low

Just 33% of new homes in England and Wales were sold before construction was complete in 2025, the lowest share recorded since 2013, according to Hamptons research. That is down from a peak of 49% a decade ago. Here is the angle most investors are missing.

Why Off-Plan Is Losing Ground

Two things are driving this. First, the buyer mix has changed. Buy-to-let investors (landlords who purchase property to rent out) were historically the biggest buyers of off-plan homes. Successive tax changes since 2016 pushed many of them out of the market. Off-plan sales followed them down.

Second, the product mix has shifted. Flats made up 54% of new homes sold off-plan in 2007. By 2025, that figure had dropped to just 22%, according to Hamptons. Housebuilders have pivoted toward houses, which buyers typically prefer to see finished before committing. Fewer flats means fewer off-plan deals almost by definition.

The financial pressure on developers is real. Higher interest rates on construction loans have added an estimated £264.5 million in extra financing costs for housebuilders compared to ten years ago, according to Hamptons. That works out at an additional £3,125 per new home sold in 2025. Every week a unit sits unsold during the build phase adds to that number.

The Risk Sitting Inside Your Off-Plan Deal

If you already hold an off-plan contract, this data matters. Developers under financing pressure are more likely to extend timelines, alter specifications, or in worst cases, fail to complete. According to The Negotiator's reporting on the Hamptons data, the government could miss its 1.5 million homes target by around 400,000 homes, which signals the broader pipeline is under stress.

None of that means off-plan is dead. But the risk profile has shifted. Consider using the BTL mortgage stress test calculator before committing to any new-build purchase, particularly where the completion date sits 18 months or more away. Rates could be materially different by the time you exchange.

Where the Opportunity Actually Is

Here is the angle. The North West bucked the national trend hard. 69% of new flats in the North West were sold off-plan in 2025, the highest share of any region in England and Wales, according to Hamptons. Demand in that corridor remains strong enough for developers to pre-sell with confidence.

That tells you something. Where developer confidence is high, off-plan deals still get done at competitive pricing. Southern regions, by contrast, recorded the sharpest falls over the past decade. If you are sourcing new-build opportunities, the Property Filter deal-sourcing platform allows you to filter by region and property type so you can identify where off-plan stock is actually moving.

For investors building a strategy around new-build, the property investment strategies guide covers how to structure off-plan entry points to protect your deposit and manage completion risk. And if stamp duty on a new build is part of your calculation, run the numbers through the stamp duty calculator before you commit.

The broad market is cooling on off-plan. That tends to be exactly when the margin for a well-researched buyer improves.

Key Takeaways

• Off-plan sales fell to 33% of new homes in England and Wales in 2025, the lowest since 2013, per Hamptons.

• Developer financing costs rose by an estimated £264.5 million compared to ten years ago, equivalent to £3,125 per home.

• The flat share of off-plan deals collapsed from 54% in 2007 to 22% in 2025.

• The North West is the standout exception: 69% of new flats there sold off-plan in 2025.

• The government is forecast to miss its 1.5 million homes target by around 400,000, adding systemic pressure to the new-build pipeline.