The Cotswolds continues to demonstrate the strength of its appeal, with demand for homes remaining resilient despite a more balanced housing market in recent years. Underpinned by its unique lifestyle offering, limited housing supply and sustained interest from affluent family buyers, the region continues to outperform many neighbouring markets and command a significant price premium.
Savills Research has analysed house prices, new build delivery, buyer demographics and future housing supply to understand the forces shaping today's market. The findings reveal a market where demand continues to outpace new development, particularly for larger family homes in the area's most sought-after locations.
Lifestyle continues to drive values
The Cotswolds remains one of Britain's most desirable places to live.
Average house prices are now around 31% higher than the average across Oxfordshire and Gloucestershire
Gaby Foord, Savills Research
Average house prices are now around 31% higher than the average across Oxfordshire and Gloucestershire, reflecting sustained demand for its countryside, market towns, and heritage villages. Since 2020, values within the Cotswold district have risen by approximately 32%, outperforming neighbouring counties despite a more balanced market in recent years.
Housing delivery remains well below demand
One of the defining characteristics of the Cotswolds housing market is the imbalance between housing need and housing delivery.
Only 184 new homes were completed across the Cotswold district in the year to March 2025, meeting just 18% of identified annual housing need. Planning constraints, conservation areas and National Landscape designation continue to limit development opportunities across much of the region, reinforcing competition for well-located new homes.
Family buyers are shaping the market
Savills Research shows new build purchasers are typically younger, more affluent and more likely to be families than the existing resident population. Median household incomes amongst new build buyers exceed those of existing residents, highlighting the continued attraction of the Cotswolds to higher-income households.
Demand remains strongest for larger homes, with four and five-bedroom properties selling significantly faster than smaller homes and apartments, reflecting buyers' priorities around space, flexibility and lifestyle.
A tale of two markets
The report highlights distinct characteristics across the North and South Cotswolds.
The North Cotswolds continues to attract buyers seeking prestigious village locations and larger family homes, with areas such as Moreton-in-Marsh, Bourton-on-the-Water and Chipping Campden remaining amongst the region's most sought-after markets. Meanwhile, the South Cotswolds benefits from a broader development pipeline and appeals to a younger, family-focused buyer demographic, attracted by accessibility, value and lifestyle.
Across both markets, new build homes continue to command premiums over second-hand stock, reflecting the scarcity of high-quality new housing supply.
Looking ahead
While almost 5,000 homes sit within the future development pipeline, the majority remain at pre-planning stage. Although delivery is expected to increase, current levels remain significantly below identified housing need.
Against a backdrop of persistent undersupply, strong buyer demand and a growing preference for larger family homes, the outlook for the Cotswolds new homes market remains positive. For buyers, developers and investors alike, opportunities are likely to remain focused on well-located schemes capable of meeting the area's evolving demand profile.
Read the full research
Discover the complete Spotlight on Cotswolds New Homes – Summer 2026 report, including detailed market analysis, buyer demographics, pricing trends and future development pipeline.
Download the full research report
Explore new homes in the Cotswolds
Putting market insight into practice, Savills is currently marketing a carefully selected collection of new homes across the Cotswolds, including The Barnhouses at Langley, a boutique collection of architect-designed homes in an exceptional countryside setting.