The number of new-build housing developments coming to market is at its lowest level in almost a decade, according to analysis which calls for action to tackle a “long-term shortage” of affordable homes.
Rightmove said it had tracked for-sale listings on its platform for more than 10 years.
It looked at whole developments coming on to the market rather than individual homes or plots.
It found there were fewer in May than since January 2017.
Across the entire market, which includes new and existing homes, the number of properties for sale was up by 85% compared with four years ago, according to the property platform.
Colleen Babcock, Rightmove’s property expert, said: “Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place.
“We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers.”
Housebuilders are required to make a certain proportion of homes in new developments affordable under Government quotas.
The Government has set a target of building 1.5 million homes over the course of this parliament in a bid to create more affordable homes to help first-time buyers.
Rightmove said its data suggests it was not on track to meet that target, despite sweeping reforms to the planning system designed to cut red tape and speed up development.
Survey data has shed light on a prolonged slump for the UK’s construction industry which has been in decline for about a year and a half.
The S&P Global UK construction PMI showed activity dropped at the fastest rate in May since the height of the Covid-19 pandemic, with builders citing project delays, hesitancy to make big investment decisions, and general cutbacks to customer budgets.
Barratt Redrow, the UK’s biggest housebuilder, called for more targeted support to help first-time buyers get on the housing ladder.
Sales and marketing director Steve Mariner said: “Government has made good progress reforming the planning system, helping unlock more land for development.
“However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get on to the housing ladder.”
Rightmove said it was calling for stamp duty to be scrapped for first-time buyers for new-build and resale properties.
Stamp duty relief on higher-priced homes was removed last year, meaning some homebuyers have to pay more tax than in previous years.
