An uplift in the number of homes developers have registered their intention to build has given rise to ‘cautious optimism’ from UK house builders according to figures released by the National House Building Council (NHBC).
But the picture is tempered by 9% reduction in the number of properties completed by comparison to the same time in 2023 and overall figures which show house building activity at its lowest in 10 years.
NHBC are the largest provider of new home warranties and insurance and track the number homes developers intend to build (registrations) and finish for sale (completions). Their research is split into properties built by house builders for private sale (Private Sector) and housing associations and Build to Rent providers (Rental and affordable sector)
The newly published Q3 New Homes Statistics Review shows 28,724 new homes were registered to be built in Q3 2024, up 40% on Q3 2023 (20,449) and running level with Q2 2024 (29,093). Of these, 19,879 were registered in the private sector and 8,845 were registered in the rental and affordable sector, 58% and 12% up on Q3 2023 respectively.
The South East, South West and East Midlands saw the largest growth in registrations, up 84%, 73% and 74% in Q3 2024 against Q3 2023. London saw a 50% reduction in registrations, with Northern Ireland and Isle of Man down 29%.
Since a boom in registrations in 2022, the new build market has largely plummeted, currently sitting at 2012/13 levels. The new Labour government has made house building a key priority with mandatory new housing targets to be introduced, alongside planning reform.
“Our latest quarter’s figures show that new home registrations are holding steady with some signs of increased activity on site and an emerging mood of cautious optimism amongst house builders. A further uplift in registrations is needed to move us towards the Government’s 1.5M new homes target, with this dependent on continued easing of interest rates and a rise in confidence amongst consumers and investors. The funding pledged by Chancellor Rachel Reeves in her first Autumn Budget was welcomed and should, over time, have a positive impact on housing supply.”
Said Steve Wood, CEO at NHBC.
Completions are similarly constrained by the fall in new build registrations with 27,868 new homes completed in Q3 2024, 9% down on Q3 2023. These were split between 17,846 in the Private sector, and 10,022 in the rental and affordable sector. The figure represents the lowest number of new build completions in a quarter since the depths of the pandemic in 2020 and the lowest number of completions in Q1,2, and 3 combined since 2014.
“With house builders cautiously optimistic about growth prospects, we anticipate an upward trajectory for new home registrations in 2025, but with the health warning that the stubborn barriers in the planning system and around skills shortages must be tackled.”
Concluded Wood.
