30,000 new homes completed in Q3 2021

In the “race for space” detached living is preferred to apartment living according to the latest stats from the National House Building Council (NHBC). 

Detached houses now make up the largest proportion of new home registrations in the UK. In Q3 2021, 36% of new homes registered to be built were detached, vs. 28% in Q3 2020, and are now at their most popular since Q2 2002. The data shows a significant shift away from apartments, making up just 13% of new home registrations in Q3 2021, falling from 29% in the same period last year.

Commenting on the latest data, NHBC Chief Executive Steve Wood said,

“With new home registrations up by a healthy 14%, the market remains buoyant. There is confidence in new homes despite the significant supply-chain disruption presently being experienced.

“Housebuilders are responding swiftly to shifts in consumer demand for detached houses that offer more space. The move away from apartment blocks is affecting London but this is only one quarter’s data.”

But it could take until 2026 for housebuilding volumes to recover to pre-pandemic volumes according to Savills.

Their figures show that delivery peaked in 2019/20 at 220,000 homes and fell to 190,000 in 2020/21. Volumes are expected to sink to 180,000 in 2021/22 and only recover 2019/20 volumes in 2026.

The Federation of Master Builders (FMB) have suggested that the availability of land is the most important constraint holding back local house builders from building new homes.

The FMB’s 2021 House Builders’ Survey shows that in 2021:

  • 63% of small builders are limited in their ability to build the homes we need by a lack of available and viable land;
  • 62% are struggling with material shortages;
  • 61% feel held back by the planning system; and
  • 53% can’t find the workers they need to build their homes.

Their survey reports that demand for new homes is booming prompted by homeowners seeking more space or moves out of cities.

Meanwhile,  Chief Executive of the FMB Brian Berry has spoken positively about the Government’s pledge to make more land available in all areas in response to the pre-Spending Review housing announcement from HM Treasury, commenting

“This commitment by the Government to make more land available is welcome news for the smallest developers, 63% of which are limited in their ability to build the homes needed by a lack of available and viable land. It’s important that more small sites are unlocked in all communities as local builders often deliver fewer than 10 homes at a time, but to the highest quality and to local need.”

“It is encouraging that the FMB’s calls for investment in the planning system have been answered. Digitisation must make the system simpler and faster, and free up planners’ time to support the smallest firms navigate the often complicated planning process.”

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