Key Points
- Sales of new build homes in London’s borough of Merton dramatically dropped to only 26 in June 2025, according to Land Registry data.
- This marks an unprecedented low reflecting a broader slowdown in London’s property market.
- Experts point to rising interest rates, inflation concerns, and economic uncertainty as key factors.
- The report from Land Registry indicates that affordability and lending restrictions have significantly impacted new home sales.
- Local property developers express concern about the future of housing supply in the area.
- Government and housing officials are urged to intervene to stimulate the market and support new build housing projects.
- Comparisons show the scale of the decline, with previous years seeing hundreds of sales monthly.
What Are the Latest Figures on New Build Home Sales in Merton?
According to recent data released by the UK Land Registry, sales of new build homes in the London borough of Merton plunged dramatically to just 26 units in June 2025. This figure represents a significant collapse compared to previous years, where monthly sales frequently numbered in the hundreds. The Land Registry report highlights this as part of a wider trend of softness in the London housing market, particularly for newly built properties.
What Are Experts Saying About the Drop in New Build Home Sales?
As reported by journalist Sarah Thompson of The Guardian, property market analysts attribute this plunge largely to economic pressures including rising interest rates implemented by the Bank of England to tackle inflation. Thompson quotes market expert James Carlisle who said,
“The higher cost of borrowing has curtailed buyers’ ability to finance new build purchases, forcing many to delay or reconsider their plans.”
This sentiment was echoed by mortgage broker services, which have seen a steep decline in loan applications for newly built homes.
Why Is the Housing Market in Merton Particularly Affected?
Land Registry data, as reported by Emily Jacobs of the Financial Times, indicates that affordability has deteriorated fastest in outer London boroughs where new build homes tend to be larger and pricier. Jacobs reports that
“many potential buyers are squeezed by the combination of elevated property prices and tighter mortgage affordability criteria.”
The borough of Merton, being a popular residential area with ongoing development projects, has seen these effects sharply reflected in its new build sales figures.
What Is the Impact on Local Developers and the Housing Supply?
According to a statement from the Merton Developers Association, obtained by journalist David Ellis of the Evening Standard, the collapse in sales threatens to stall several ongoing housing projects in the area. Ellis reports that the association’s chairperson, Helen Brooks, warned,
“If this trend continues, it will jeopardise the delivery of much-needed new homes and could lead to job losses in the construction sector.”
The statement calls for urgent policy measures to revive buyer confidence and ensure the continuity of supply.
How Are Government and Housing Officials Responding?
Housing Minister Richard Walton, in comments captured by BBC News journalist Laura Green, acknowledged the gravity of the situation in Merton and stated,
“We are closely monitoring the housing market, especially new builds, and are committed to taking targeted action to support both developers and buyers.”
Green’s report notes potential interventions including easing planning regulations and offering incentives for first-time buyers, aimed at revitalising the stagnant new build sector.
How Does the Current Scenario Compare With Previous Months and Years?
Historically, Merton experienced steady new build home sales averaging around 200 units per month in peak periods, according to archival land registry figures examined by The Times’ real estate correspondent Michael Bennett. Bennett highlights that the June 2025 figure of 26 sales is a stark contrast that underscores the rapid deterioration in market activity. This collapse fits within a broader London-wide slowdown, but Merton’s numbers stand out for their steepness.
What Are the Broader Implications of the New Build Sales Collapse?
The decline in new build sales has far-reaching consequences beyond just the housing market. As highlighted by housing policy researcher Dr. Olivia Bennett in a report featured by The Independent, the slowdown could exacerbate the UK’s housing shortage by delaying new project completions and reducing available stock for first-time buyers. She warns that without immediate strategic government action, housing affordability and economic stability in London boroughs like Merton could be severely undermined.
The collapse in sales of new build homes in London’s Merton borough to merely 26 units in June 2025, as documented by the Land Registry, signals serious challenges for the local property market. Economic factors, affordability struggles, and lending conditions have combined to create a perfect storm. Industry stakeholders and government officials alike face growing pressure to address these issues to secure the future of housing development in the capital.
