The average price of a new build property in Scotland has risen 3.8% year on year reaching £364,912 while London has seen a sharp 13.3% annual fall, according to Propertymark’s Winter 2025/26 New Builds Pricing Report.
The data, based on new build instruction prices, highlights widening regional disparities at a time when delivery levels remain under pressure and government housing targets loom large.
In Scotland, average values increased from £351,414 to £364,912, broadly in line with overall UK house price growth. By contrast, across inner and outer London, average new build prices fell from £897,135 to £777,688 – a drop of £119,447.
The report says that pricing shifts may reflect changes in the type and location of developments coming to market, alongside planning complexity, build costs and labour pressures, rather than a direct slowdown in buyer demand.
CONSTRAINED SUPPLY
For developers and funders, London’s pricing correction comes against a backdrop of constrained supply.
Around 18,500 homes are expected to complete by the end of 2026, with a further 15,000 by the end of 2027 – well below the government’s target of delivering 176,000 new homes across the capital within two years.
Elsewhere, the North East posted one of the strongest annual increases, up £25,434 to £344,772. Yorkshire and Humberside rose by £12,114 to £315,770, while the South East gained £9,755 to £551,238. The West Midlands also recorded growth, up £9,173 to £379,784.
However, several regions recorded annual declines, including Wales (down £8,754 to £344,332), the East Midlands (down £14,450 to £350,680), the East of England (down £12,437 to £481,221) and the South West (down £6,020 to £426,137). Northern Ireland was excluded due to insufficient data volumes.
“There must be capacity at all levels to deliver new housing stock.”
Nathan Emerson, CEO of Propertymark, says: “Across the entire UK, we sit in a phase where both the UK Government and all devolved administrations are extremely keen to achieve their own housing targets.
“Looking at England, there is a drive to build 1.5. million homes across the current parliamentary term. However, current output is not keeping pace with this initial ambition and real-world demand for such dwellings continues to mount up.
“Access to high-quality and sustainable housing is the fundamental baseline needed for communities to flourish and for regional economies to function well. As the population continues to grow across the entire UK, there must be capacity at all levels to deliver new housing stock, from conception to completion.”
