Hidden housing supply: Where are all the new homes going?

Just one in 10 newly built homes are reaching the open market, raising fresh concerns about access to homeownership as supply is increasingly funnelled elsewhere.

New analysis from Alto, drawing on data from the Office for National Statistics, suggests the vast majority of new-build stock is being diverted away from traditional for-sale channels. Instead of being marketed through estate agents to individual buyers, a growing share is absorbed by build-to-rent schemes, developer-led direct sales, and affordable or shared ownership programmes.

The scale of the shift is stark. Of the roughly 200,000 homes delivered across England in 2024/25, only 21,261 were made available on the open market—limiting visibility and access for would-be homeowners reliant on conventional routes to purchase.

The trend is most pronounced in London, where just 2% of new-build homes are reaching the open market. For many buyers, that effectively means competing over an ever-smaller pool of available stock.

Taken together, the figures point to a structural rebalancing of the housing market. With more homes channelled into rental and alternative tenure models, the UK may be edging closer to a more European-style system—where long-term renting, rather than ownership, becomes the norm for a growing share of the population.

Riccardo Iannucci-Dawson, CEO of Alto, has created a free tool showing how many newly built properties near you are actually available to buy.

He said: “People see homes being built and assume they’ll be available to buy, but the reality is many never reach the market buyers actually interact with day to day.”

“This isn’t just about how many homes are built, but how many are accessible – and in some areas, that’s a small fraction of total supply.

“At the same time, the UK is starting to mirror parts of Europe, like France and Germany, where long-term renting is more common and large-scale rental developments form a bigger part of the housing mix. Over time, that may lead to Britain becoming more of a nation of renters.”

The findings come amid growing frustration among would-be buyers. Separate research of 2,000 adults reveals that 44% feel there simply aren’t enough properties available for them to purchase—reinforcing the sense that supply is not just constrained, but increasingly out of reach.

Perception is playing a key role. Almost half of respondents (46%) believe new-build developments in their area are being targeted primarily at investors and landlords, rather than local owner-occupiers. Whether fully accurate or not, that belief is shaping confidence—and, in many cases, undermining it.

The consequence is a growing resignation among aspiring homeowners. More than a third (36%) now think they will never own a property, pointing to affordability pressures as the primary barrier. Six in 10 cite high house prices, while 58% say their income simply doesn’t stretch far enough to compete in today’s market.

At the same time, attitudes towards renting appear to be shifting. While still a minority, 15% say they actively prefer renting, reflecting a gradual cultural shift towards more flexible, European-style living arrangements—particularly among younger cohorts.

There is also a clear expectation that policymakers should intervene. A majority (57%) believe it is the government’s responsibility to ensure there are enough homes to meet demand, while 46% say more targeted support is needed for first-time buyers. Meanwhile, over a quarter (27%) favour tighter regulation of rental prices as affordability pressures extend across tenures.

Tensions around investor activity are also evident. Some 61% of respondents believe property investors and landlords are crowding out first-time buyers, and nearly half (48%) would support stricter limits on investors purchasing new homes—highlighting the increasingly contested role of private capital in shaping housing supply and access.

Iannucci-Dawson added: “It is clear the appetite to own a home is still there, but the opportunity doesn’t mirror their eagerness.

“The open market is often estate agent led and follows the traditional path of the buyer finding a property through an agent.

“It is clear to see a large proportion of homes aren’t making it to the ‘typical’ sales stream because it removes the opportunity for so many to get on the ladder.”

Click here to access Alto’s tool to find out how many properties being built near you are available to buy right now.

The area where the least properties make it to the open market:

London – 2.12%

North West – 7.51%

North East – 8.49%

East of England – 9.67%

South East – 10.10%

East Midlands – 11.67%

Yorkshire and the Humber – 13.66%

West Midlands – 13.86%

South West – 17.01%

Read the orginal article: https://propertyindustryeye.com/hidden-housing-supply-where-are-all-the-new-homes-going/?utm_source=rss&utm_medium=rss&utm_campaign=hidden-housing-supply-where-are-all-the-new-homes-going