Landlords and investors may want to take note of new data showing where new build homes are most concentrated across the UK. Research by the Alan Boswell Group has revealed towns like Banwell, Swanscombe and Arundel are leading the way in fresh housing supply, creating potential buy-to-let openings in markets often overlooked by traditional investors.
Where new builds dominate the market
Banwell in North Somerset tops the list, with 180 of its 275 property sales in 2023–24 coming from new builds—an extraordinary 65.45%. For a rural village of just 3,000 people, that level of development is eye-catching and signals a growing trend of buyers moving out of larger cities in search of affordability.
Swanscombe in Kent followed closely, where 394 of 711 transactions (55.41%) were new builds. Its location on the commuter belt makes it an attractive option for young families priced out of London but still seeking access to the capital. Arundel in West Sussex placed third with 46.87% of sales coming from new stock, blending historic character with modern housing demand.
Heath Alexander-Bew of Alan Boswell Group said: “The UK’s housing demand remains intense, especially in large cities where new build construction often can’t keep up with population growth. This data clearly shows that regional development hotspots, even in smaller towns like Banwell or Swanscombe, are filling that gap.”
For landlords, these figures highlight potential high-demand areas where energy-efficient new builds could command premium rents with minimal maintenance costs.
Cities lag behind despite tenant demand
By contrast, the UK’s biggest cities—where rental demand is strongest—show a surprisingly low share of new build sales. Derby recorded the highest proportion among large urban centres, but just 16.41%. Liverpool stood at 12.59%, Manchester 11.03%, and London only 8.62%, despite 9,836 new build sales across the capital.
The imbalance underlines the planning and land constraints that restrict large-scale delivery in established cities. For landlords, this means rental pressure in urban markets is unlikely to ease, as demand continues to outpace supply.
The National Residential Landlords Association (NRLA) has repeatedly warned about this mismatch. Chief executive Ben Beadle recently said: “Across the UK, tenant demand far outstrips the homes available. Unless policymakers encourage investment in rental supply, pressure will remain high and rents will keep rising.”
Investor outlook: Where buy-to-let can thrive
With 4.7 million buy-to-let properties already rented out across the UK and lending into the sector up 12% year-on-year, landlords are still hungry for opportunities. Mortgage rates have stabilised, with average two-year fixed buy-to-let products now around 4.3% (75% LTV) according to UK Finance, making expansion more viable than in 2023.
For landlords looking to diversify portfolios, commuter towns and smaller regions with a high share of new builds—such as Milton Keynes (17.39%) and East Riding of Yorkshire (17.05%)—offer strong long-term growth potential. Scotland and Northern Ireland also recorded new build shares of 10.57% and 13.48% respectively, pointing to markets with both tenant demand and ongoing development.
A Midlands-based landlord told us: “I’ve always targeted older terraces because of value, but new builds are becoming more attractive. Energy efficiency is a huge selling point for tenants, and if I can buy in an area where half the homes are new, it makes sense for long-term returns.”
Editor’s view
This study highlights a widening divide: smaller towns are delivering the bulk of new housing while cities—where tenants are desperate for supply—lag far behind. For landlords, the message is twofold. Urban rentals will remain under pressure, sustaining yields, while commuter towns and rural hotspots could deliver the next wave of growth.
