A third (33%) of new homes across England and Wales were sold before construction was complete in 2025, marking the lowest proportion seen in more than a decade, analysis by a property firm indicates.
The proportion is down from a recent peak of 49% in 2016 and the lowest share since 2013, according to calculations by Hamptons.
Southern regions have recorded sharp falls in off-plan sales before construction was completed, while northern regions have fared better, according to the research.
Hamptons’ off-plan sales index used new home sales data from its parent company Connells Group and analysed Land Registry completions for England and Wales to model the share of homes sold before they were built.
The firm said the second-home stamp duty surcharge had reduced buy-to-let investor demand, particularly in southern markets.
Because buy-to-let investors have traditionally dominated off-plan purchases, their retreat from the market has had a disproportionate impact on house builders’ early sales, Hamptons said.
It added that changing trends in the mix of homes being built has further reduced the overall proportion of new homes being sold off-plan, with flat developments being scaled back.
Flats continue to be more likely than any other type of new home to be sold off-plan, reflecting their popularity with investors and first-time buyers, who are less constrained by timescales and housing chains, the report found.
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In 2025, more than half (55%) of flats across England and Wales were sold before construction was completed, the research indicated.
The highest proportion was recorded in the north-west of England, where 69% of flats were sold off-plan, which Hamptons said was driven by strong and sustained investor appetite.
In London, 65% of flats were sold off-plan last year, according to the research.
Off-plan house sales tend to be less common.
Yorkshire and the Humber recorded the highest share of new houses sold off-plan (29%) last year, compared with some 15% in London.
David Fell, lead analyst at Hamptons, said: “Over the past decade, the share of new homes sold before construction is complete has fallen by around a third.
“This partly reflects the loss of buy-to-let investors from the market, who have traditionally been the largest buyers of off-plan homes.
“However, the shift away from building flats towards houses, which are more likely to be sold after they’re finished and ready to move into, has increasingly contributed to the downward trend.”
He said: “House builders are increasingly focused on protecting margins, which has favoured faster-selling suburban schemes.
“By contrast, profits on slower-selling, high-density sites have been eroded, or in some cases, wiped out entirely by rising finance costs.
“In a higher inflation, higher interest-rate world, off-plan sales have rarely been more valuable.
“The cash they generate allows house builders to pay down expensive development finance earlier and help offset the substantial upfront costs of materials and labour.
“Many of the materials needed to build new homes are highly energy intensive, meaning their costs have risen far faster than wider inflation.”
