London new-build demand plummets behind commuter belt as buyers look beyond the capital

The analysis of current market activity shows that demand for new-build homes in London stands at just 8.8%, based on the proportion of properties already sold subject to contract compared to total new-build stock.

In contrast, demand is considerably stronger across the capital's commuter counties. Essex leads the way, where 27.6% of new-build homes have already been sold subject to contract, followed by Hertfordshire at 23.7%. Surrey ranks third at 21.2%, while Kent records demand of 18.3%. Buckinghamshire and Berkshire also outperform London with demand levels of 17.5% and 17.4% respectively.

The findings suggest that buyers continue to look beyond the capital in search of new homes, with commuter locations proving increasingly attractive.

Hertfordshire faces supply challenge

While demand remains robust across the commuter belt, the research highlights a growing supply issue in Hertfordshire. 

Despite recording the second highest level of buyer demand, new-build homes account for just 7.1% of all property listings in the county. This is the lowest level of new-build stock among all commuter belt locations analysed and is identical to the proportion recorded in London. 

The combination of strong demand and limited supply is placing upward pressure on prices. 

The average price of a new-build home in Hertfordshire has increased by 3.5% over the last year, rising from £592,163 in March 2025 to £612,781 in March 2026. This is the strongest growth across London’s surrounding counties.. 

Kent has seen new-build prices increase by 2.5% on the year, while Essex has recorded growth of 2.1%. 

In contrast, London's new-build market has experienced a sharp decline. The average new-build price has fallen by -1.5%, dropping from £512,376 in March 2025 to £504,870 in March 2026. Only one of London’s surrounding counties has shared in its new-build price drop over the past decade, and that’s Berkshire where the average price fell by -0.4% 

Andy Morrison, Director of UK Property Development, commented:

"The contrast between London and its commuter belt is becoming increasingly apparent. While demand for new-build homes within the capital remains relatively subdued, buyers are showing a much stronger appetite for locations that offer greater value for money and more living space. 

Many purchasers are prioritising larger homes, access to green space, strong local amenities and a greater sense of community, whilst still retaining the ability to commute into London when required. As a result, commuter towns are proving particularly attractive.

Hertfordshire is a perfect example of this trend. Demand is among the strongest of any commuter county, yet new-build supply remains extremely limited. When buyer appetite significantly outpaces the availability of homes, upward pressure on prices is almost inevitable.

The fact that new-build values are rising strongly across counties such as Hertfordshire and Essex, while falling in London, demonstrates where buyer priorities currently lie. Developers and local authorities will need to ensure sufficient housing delivery in these high-demand commuter markets if they are to prevent affordability pressures from intensifying further." 

Data tables and sources

• *New-build stock and demand data sourced from RIghtmove (correct as of 12/06/2026)

• *Average house price data sourced from the UK House Price Index (Jan 26)

• Full data tables and sources can be viewed online here