Less than one in five new homes on property portals were listed as “sold” in the third quarter of this year, new research has shown.
Demand for properties for new construction fell both quarterly and annually in Q3, according to analysis by Real Estate Inspection of Right Move listings.
The research found that just 17.7% of new construction listings in Britain were marked as “sold subject to contract” (SSTC) in Q3, down 0.5% from the previous quarter and 1.1% year on year.
Demand was weakest in Newcastle, where only 4.5% of new homes were offered.
Liverpool was a close second at 4.8%, followed by Aberdeen at 6%, Swansea at 6.4% and Leeds at 9.3%.
Despite the overall slowdown, some cities have bucked the trend.
Southampton saw 40.3% of the new homes already on offer, followed by Sheffield on 33.1%, Bournemouth on 22.6%, Bristol on 21.8% and Portsmouth on 21.7%.
Sheffield also saw the biggest quarterly improvement, with demand up 12.5%.
In Bournemouth it rose by 7.7%, Plymouth by 6.1%, Swansea by 5.3% and Southampton by 5%.
Property Inspect Operations Director Sián Hemming-Metcalfe said: “Buyer demand for new-build properties has undoubtedly cooled in recent months, with less than one in five finding a buyer.
“Rising borrowing costs, affordability pressures and the uncertainty surrounding the government’s housing policy ahead of the autumn statement have all combined to make buyers more cautious.
“With new construction commanding a strong premium versus mainstream housing stock, it stands to reason that the new housing sector will be more vulnerable to these market influences.
“The photo is not entirely negative, however.
“Cities such as Sheffield and Southampton show that the appetite for quality new build stock remains strong when the right product is delivered.”