Regulation blamed for slump in new-build housing supply

“Regulatory bottlenecks” are to blame for a decline in new-build supply, according to new research.

Data by Property Inspect reveals new-build supply in Britain has fallen dramatically and now accounts for just 5.9% of all current residential property listings in Great Britain.

Industry experts say a shortage of qualified surveyors and assessors and regulatory rules are causing delays.

New-build supply has fallen

According to Property Inspect, new-build supply has fallen by 0.1% since Q2 2025 and by 0.4% since Q3 2024.

Aberdeen stands out as the only city to record any kind of growth in supply, with 12.9% of current listings made up of new-build homes.

In contrast, London has seen new-build supply fall by 0.3% over the year, while Cardiff and Bournemouth have both recorded drops of 0.2%. Elsewhere, only small increases were recorded in Leicester (0.3%), Cardiff (0.3%), Portsmouth (0.2%), Bournemouth (0.2%), and London (0.1%).

A lag between completion and availability

Industry experts warn regulation could be slowing down delivery, as they say a shortage of qualified surveyors and assessors, and questions over the competence of those already in post, have led to significant bottlenecks in the approval process.

Experts warn many developers are finding that completed homes are being held in limbo, unable to be legally occupied or listed until all regulatory checks are passed. They say the BSR’s processes, though vital for public safety, are proving to be another layer of friction in an already strained supply chain.

Sián Hemming-Metcalfe, operations director at Property Inspect, said: “Britain’s housing shortfall isn’t only about how many homes we build, it’s also about how quickly completed homes can reach the market.

“The current regulatory bottlenecks, while vital for public safety, are creating a lag between completion and availability that’s masking the true volume of housing being delivered. Until regulatory capacity catches up with policy ambition, supply statistics will continue to understate delivery and overstate decline.”