Increase in homes bought off-plan

The fall in the number of properties for sale fuelled the first rise in new homes sold offplan since 2016, according to Hamptons.

In 2021, 37 per cent of new homes sold in England and Wales found a buyer before completion, up from 35 per cent in 2020. While this figure is still below the 47 per centpeak recorded in 2017, it reversed a downward trend, says researcher Alison Blease.

Most new build buyers hand over a standard 10 per cent deposit on exchange of contracts with the balance payable on completion. This means that last year buyers paid a record £1.1bn in deposits for homes that had yet to be built.