Average house prices for new instructions on newbuild properties in the South West fell by £33,120 in October 2025 compared with the same month a year earlier, according to new data from Propertymark.
Yorkshire and Humberside recorded a similar decline, with average newbuild instruction prices dropping by £33,104 over the same period.
The findings highlight sharp regional variations in pricing despite an overall rise in the national average.
Propertymark said the average price of a new instruction for a newbuild home across the UK now stands at £442,281, representing a £15,138 increase since its previous report published in July 2025, when the figure was £427,143.
The organisation noted that affordability continues to be a major challenge for prospective buyers across all regions, particularly as local housing targets vary among devolved administrations.
The data also sits against the backdrop of the Planning and Infrastructure Bill, which aims to enable the construction of 1.5m new homes in England and is progressing through Parliament.
With the Autumn Budget approaching, speculation over a potential replacement for stamp duty in England and Northern Ireland has raised questions about how any new tax structure could influence newbuild pricing in the year ahead.
Across the regions, London recorded the largest annual increase, rising by £102,685 to £819,800. The North West followed with a £61,404 rise to £372,622, while the East of England, East Midlands and South East also saw notable increases.
In contrast, the South West and Yorkshire and Humberside were the only regions to post year-on-year declines this quarter. Propertymark said Northern Ireland was excluded from the dataset due to insufficient sample size.
Nathan Emerson, CEO at Propertymark, said: “With an ever-growing population comes a defined commitment to ensure there is a sustainable mix of new dwellings to keep pace with future demand.
“Across all nations, various Governments have made key pledges to build ambitious numbers of new properties.
“However, it remains prudent to ensure such homes are designed and built to deliver realistic affordability and better certainty regarding long term pricing trends.
“While the price of raw materials and labour generally trends upwards over time, from a consumer viewpoint, it can appear puzzling to see such year-on-year price fluctuations on new homes coming to the market.
“It is important to consider house pricing is influenced by many complex metrics, which may include the initial cost of the land any such properties are built on, the type of property being constructed, the cost of design, and the intricacies of the planning approval process, as well as the availability of base materials at any particular time, to credit just a few considerations.”
