Research shows developers are prioritising scheme value over faster sales, driving demand for exit finance
More than one in eight new-build homes in England has been on the market for over six months, according to new analysis from specialist lender Octane Capital, which also found that relatively few developers are responding by cutting asking prices.
The lender examined a representative sample of more than 1,100 live new-build listings across England, measuring time on market and asking price reductions against the broader pool of new-build stock currently available.
The data shows that 25% of new-build homes have been listed for more than three months. More significantly, 13% have been seeking a buyer for over six months, with 4% remaining unsold for more than a year. Applied to the estimated 34,831 new-build homes currently for sale across England, the figures suggest approximately 4,400 completed properties have now been on the market for more than half a year.
Despite extended selling periods, only 14.5% of all new-build homes currently listed have seen an asking price reduction, indicating that most developers are opting to hold on pricing rather than accept offers that would reduce scheme profitability.
Octane Capital noted that while this strategy helps protect gross development values, it also means capital remains tied up in completed developments for longer, delaying reinvestment into future projects. The lender argues this is increasing the relevance of developer exit finance, which allows developers to refinance completed schemes, repay development facilities and release working capital.
The findings coincide with growing caution among developers about starting new projects. Octane Capital's latest Developer Sentiment Survey found that 57% of developers are now less likely to begin new schemes during 2026, while 83% expect to use specialist finance to navigate current market conditions.
"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," said Jonathan Samuels (pictured right), chief executive officer at Octane Capital.
"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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