Buy-to-Let Spotlight: Why Investors Should Track New Build Trends

New build properties are fast becoming a focal point for buy-to-let investors — offering lower maintenance costs, higher energy efficiency, and strong tenant demand. With over 4.7 million buy-to-let homes now rented across the UK, and lending in the sector rising 12% year-on-year to £20.5bn in 2024, the market is showing no signs of slowing.

The average new build is priced at £330,000, compared to £272,000 for existing stock. While that premium may give some investors pause, the long-term benefits — fewer repair bills, higher EPC ratings, and stronger rental appeal — are proving hard to ignore.

Where are the new build hotspots?

Recent analysis highlights regions where new developments are thriving — and where investors may find their next opportunity.

• Milton Keynes (17.39%), East Riding of Yorkshire (17.05%), and Warwickshire (14.44%) recorded the highest share of new build homes between 2023–25, signalling strong local demand.
• Detached homes made up nearly 14% of all new build sales, underscoring growing appetite among families and long-term tenants.
• Flats and maisonettes followed closely at 11.2%, catering to buyers and renters seeking affordability and city convenience.

The top three new build locations

1. Banwell, North Somerset – This small village tops the list, with 65.45% of all sales being new builds. Rising demand in rural areas shows the appeal of escaping city prices without sacrificing quality of life.
2. Swanscombe, Kent – With over 55% of transactions being new builds, Swanscombe offers proximity to London at lower price points — attractive for both first-time buyers and landlords targeting commuter demand.
3. Arundel, West Sussex – Blending history with modern living, nearly 47% of sales here were new builds. Its coastal and commuter appeal makes it an emerging hotspot for investors.

Where supply is falling short

Not every region is keeping up. In 207 towns and cities, including Twickenham, Southsea, and Hebden Bridge, no new build sales were recorded at all in 2023–24. Planning constraints, heritage protections, and saturated markets are limiting modern development.

Even in the UK’s biggest cities, delivery remains modest:

• Derby – 16.4% of sales were new builds.
• Liverpool – 12.6%.
• Manchester – 11%.

These low figures, despite strong demand, suggest that undersupply will continue to drive values higher in urban markets.

London’s mixed picture

London sits mid-table nationally, ranking 408th overall for new build share at 8.6%. Yet in terms of volume, the capital remains unmatched, with nearly 10,000 new build sales in a year — boosted by regeneration zones like Battersea and Stratford.

Investor takeaway

For landlords, the data signals two key opportunities:

• Commuter towns and smaller regional hubs (like Banwell and Swanscombe) where new builds dominate, often offering higher yields and tenant demand.
• Major cities (like Manchester and London) where undersupply ensures continued upward pressure on both prices and rents.

As Heath Alexander-Bew of Alan Boswell Group notes, “Regional hotspots are filling the gap where cities can’t keep up. For families and long-term tenants, detached homes remain particularly attractive — making them a solid bet for investors looking to build sustainable portfolios.”

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