Developers in Westminster were holding 416 completed new homes that had not sold at the end of March, around 40% of everything they had finished in the borough over three years, according to the development research firm Molior. Across London, buyers of new homes have rarely had so much choice of finished stock, or so much room to negotiate on it.
The same figures also point the other way. Construction starts have fallen so far that, on Molior's projections, the number of new private homes completing in London will drop sharply from 2027.
What the development figures show
Molior's report on the first quarter of 2026, covering private homes in London developments of 20 or more, recorded 2,850 sales, 30% above the 2025 quarterly average, and 2,100 construction starts, 50% above it. Both are modest. Molior calculates that delivering 88,000 homes a year would need around 22,000 starts a quarter, and that sales to individual buyers, as opposed to companies, have fallen by 67% since 2022.
Of the 45,000 homes completed in these developments in the last three years, 92% have sold, leaving 3,650 finished but unsold. Molior describes that total as "a bit high", and identifies Westminster as the only area with a real problem. A further 15,100 homes under construction still need buyers. Molior expects 16,250 completions in 2026, falling to 10,000 in 2027, and its own conclusion is stark: "Without a demand stimulus, the industry could shut down."
Where buyers have leverage
A completed, unsold home costs a developer money every month in finance, service charges and council tax, and a developer with several of them in one building has a reason to agree a sale. In practice that can mean a negotiated price, a contribution to costs, or a better specification, though every scheme is different and some developers prefer incentives to visible price cuts.
Buying a finished home also removes the main risks of buying off-plan: the buyer can see the actual flat, the views and the finishes, rather than a show apartment and a specification. At the top of the market, new launches continue; Native Land is marketing a four-bedroom penthouse of 3,100 square feet at 100 George Street, Marylebone, at £15.5 million, according to The National.
The leverage may not last. If completions fall as Molior expects, buyers looking at new homes in 2028 may find far less choice than buyers do today.
Protections to check before you reserve
- The New Homes Quality Code. Developers registered with the New Homes Quality Board must follow the Code. Among other things, it gives a buyer a 14-day cooling-off period after reserving, with the reservation fee refunded on cancellation, and the right to inspect the home before completion. Disputes can go to the New Homes Ombudsman.
- The warranty. Most lenders expect a new home to carry a structural warranty. NHBC's Buildmark, for example, runs for ten years: for the first two the builder must put right reported defects, and for the following eight it is insurance against damage caused by defects in specified parts of the home. Check which warranty applies and when it started; on a home finished some time ago, part of it may already have run.
- Ground rent. Most new long residential leases granted in England on or after 30 June 2022 may charge no more than a peppercorn ground rent, with penalties of £500 to £30,000 for landlords who breach the rules. Service charges are a separate matter and should be checked against the building's budget.
- The paperwork for an off-plan purchase. If you buy before completion, your solicitor should check the deposit arrangements, the long-stop date by which the developer must finish, and what happens if the specification changes.
For buyers from overseas
Many buyers of new homes in central London live abroad. The purchase process is the same, but stamp duty can be higher for buyers who are not UK resident or who own another home, as we covered in an earlier article. None of this is financial or legal advice; a solicitor and, where relevant, a tax adviser should confirm the position before an exchange of contracts.
Dolce Vita advises buyers and sellers across the UK from Mayfair, handles lettings, and helps clients buy abroad through partner agencies. If you are selling in order to buy, Request a valuation; we acknowledge the same working day and return a written valuation within 24 to 48 hours.
Chris Dawson, Co-Founder
Sources: Molior, "Residential Development in London: Sales Struggle + Construction Scarcity", April 2026 (first quarter 2026). The National, "London's prime properties take a 10% hit but new super homes emerge", 22 October 2026. HCR Law, "The New Homes Quality Code: what it means to buyers", 25 January 2022. NHBC, "Your Buildmark cover" (nhbc.co.uk). MHCLG, "Leasehold Reform (Ground Rent) Act 2022: statutory guidance for enforcement authorities" (gov.uk, updated 20 October 2026).