One in eight new-build homes in England remains on the market for more than six months as developers resist price reductions and seek to protect scheme values, according to Octane Capital.
The specialist lender’s analysis suggests around 4,400 completed new-build properties have been available for at least six months, potentially leaving significant amounts of developer capital tied up in finished schemes.
More than a quarter of new-build homes have been marketed for over three months, while 4% remain available after more than a year.
Despite these extended sales periods, just 14.5% of new-build properties currently for sale have undergone an asking-price reduction.
DEVELOPERS PROTECT SCHEME VALUES
Octane Capital analyses a representative sample of more than 1,100 live new-build listings across England, comparing the results with an estimated 34,831 new-build homes currently available.
The findings suggest developers are prioritising profitability over speed of sale, with many prepared to extend marketing periods rather than accept discounts that could reduce gross development values and overall returns.
However, holding completed properties for longer delays the repayment of development facilities and prevents capital from being recycled into land purchases and future schemes.
This is increasing the importance of developer exit finance, which enables developers to refinance completed projects, repay existing development loans and release working capital while sales continue.
SPECIALIST FINANCE DEMAND GROWS
The findings follow Octane Capital’s latest Developer Sentiment Survey, which shows 57% of developers are less likely to begin new schemes during 2026.
Meanwhile, 83% expect to use specialist finance to help navigate current market conditions.
Jonathan Samuels (main picture, inset), CEO of Octane Capital, says: “The immediate assumption is often that if new-build homes aren’t selling quickly, developers will simply reduce prices, but in reality that’s often the last option they want to consider.
“Every discount comes straight off the bottom line and, after several years of planning, construction and rising build costs, protecting profitability has become more important than ever.
“Many developers would rather give themselves additional time to sell than unnecessarily erode the value of a scheme, particularly where market conditions remain relatively stable and buyer demand is still there.
“It’s about giving developers greater control.”
“That’s why developer exit finance has become increasingly important. It provides developers with the breathing space to refinance completed schemes, release capital and continue selling without the pressure of having to accept lower offers simply to satisfy an approaching loan maturity.
“Ultimately, it’s about giving developers greater control over the final stage of a project, helping them maximise value whilst putting themselves in a stronger position to move on to their next opportunity.”
