One in eight new-build homes unsold after six months – Octane Capital
The specialist lender analysed a representative sample of more than 1,100 live new-build listings across England, assessing the length of time properties had been marketed.
One in eight new-build homes in England have remained on the market for more than six months, research from Octane Capital has revealed.
The specialist lender analysed a representative sample of more than 1,100 live new-build listings across England, assessing the length of time properties had been marketed and the proportion that had undergone asking price reductions.
More than a quarter (25%) of new-build homes had been on the market for longer than three months, while 13% had been listed for more than six months and 4% for over a year.
Octane Capital estimated that, when applied to the 34,831 new-build homes currently available for sale across England, around 4,400 properties have spent more than six months on the market.
Despite longer selling periods, 14.5% of new-build homes currently listed for sale have undergone an asking price reduction.
Octane Capital said this suggested developers were increasingly choosing to allow more time for properties to sell rather than reducing prices and potentially affecting scheme profitability.
However, longer sales periods can leave capital tied up in completed developments, potentially delaying its deployment into future projects.
The lender said this had increased the importance of developer exit finance, allowing developers to refinance completed schemes, repay existing development facilities and release working capital while continuing to market remaining properties.
The findings follow Octane Capital’s Developer Sentiment Survey, which found 57% of developers were less likely to break ground on new schemes during 2026.
Some 83% also expected to use specialist finance to help navigate current market conditions.
Jonathan Samuels, CEO of Octane Capital, said: “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.
“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.”
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