“Fragile consumer confidence, affordability challenges and global economic uncertainty” are impacting on builders’ decisions to invest in new housing, according to the latest figures on new builds from the National House Building Council (NHBC).
Despite government targets to build 1.5 million new homes in this parliament, the NHBC says the figures in its Q1 new home statistics review show UK new home registrations are down by 6% in Q1 2026 compared to the same period last year, with a broadly flat number of completions. The data is based on NHBC’s provision of new home warranties and insurance, which the organisation says covers more than 70% of new homes built in the UK.
The English Housing Supply Q1 2026 data from Savills suggests a similar story. The 12 months to March 2026 saw just a “marginal improvement” in house building, with 204,500 completions (up 1% year-on-year). However, the total remains well below the 367,000 annual build numbers needed to hit the government’s targets.
The increase in the number of new homes gaining planning consent – around 186,000 in the 12 months to Q1 2026 – should be considered in the context of very low levels of consents, Savills explained. The gap between the number of homes granted planning permission with the number being completed indicates the pipeline of new homes is likely to contract. In the year to Q1 2026, six out of nine English regions received consent for fewer new homes than were completed.
NHBC’s data also recorded a decline in many regions in Q1 compared to the same period a year ago, with the largest in Northern Ireland (-44%), London (-37%) and Wales (-21%). The North West saw the greatest rise (+27%), with the North East (+15%), Yorkshire and The Humber (+7%) and West Midlands (+2%) all experiencing increases.
Daniel Pearce, corporate strategy director at NHBC, said: “Our latest figures indicate house builders are taking a cautious approach to registering new plots as fragile consumer confidence, affordability challenges and global economic uncertainty continue to impact demand.
“It’s a perfect storm – the market is subdued, mortgage rates are rising and cost pressures on households are in full effect, exacerbated by geopolitics and recent conflicts. Resolving affordability challenges for homebuyers remains the key to unlocking demand. The market is crying out for some targeted stimulus, such as a new buyer incentive, to help those who need it most get on the housing ladder.
“At present, there is little incentive for developers to accelerate building. Easing certain regulatory requirements, at a time when other costs are rising beyond their control, is a lever that could be pulled to support home builders, particularly SMEs. Accelerating planning reforms is also crucial to help house builders deliver high-quality new homes at volume. The impact of the recent planning changes has yet to be felt.”
Pearce added it is crucial to look at “options to support buyer demand, particularly for first-time buyers and those who need it most” to stimulate demand, whilst trying to reduce costs for builders, and remove regulatory and planning red tape to boost supply.
