Demand for new-build homes in London is lagging behind surrounding commuter counties, new research suggests.

Analysis by UK Property Development found 8.8% of new-build properties in London are sold subject to contract as a proportion of total stock, compared with 27.6% in Essex.

Hertfordshire recorded the second-highest level at 23.7%, followed by Surrey at 21.2%, Kent at 18.3%, Buckinghamshire at 17.5% and Berkshire at 17.4%.

The research suggested buyers are increasingly looking beyond the capital for greater space and value for money.

Despite strong demand, new builds accounted for just 7.1% of all properties listed in Hertfordshire, equal to London and the lowest proportion among the commuter-belt areas analysed.

Hertfordshire also recorded the strongest new-build price growth among the commuter counties, with the average increasing 3.5% from £592,163 in March 2025 to £612,781 in March 2026.

Average prices rose 2.5% in Kent and 2.1% in Essex over the same period.

London moved in the opposite direction, with the average new-build price falling 1.5% from £512,376 to £504,870. Berkshire recorded a 0.4% decline.

Andy Morrison, director of UK Property Development, said: “The contrast between London and its commuter belt is becoming increasingly apparent.

“While demand for new-build homes within the capital remains relatively subdued, buyers are showing a much stronger appetite for locations that offer greater value for money and more living space.

“Many purchasers are prioritising larger homes, access to green space, strong local amenities and a greater sense of community, whilst still retaining the ability to commute into London when required.”

He added: “The fact that new-build values are rising strongly across counties such as Hertfordshire and Essex, while falling in London, demonstrates where buyer priorities currently lie.

“Developers and local authorities will need to ensure sufficient housing delivery in these high-demand commuter markets if they are to prevent affordability pressures from intensifying further.”