The government’s focus on housing has provided a boost to developers according to the National House Building Council, which says new home registrations are up 36% on this time last year.
The figures from the NHBC reveal that 29,356 new homes were registered to be built in Q1 2025, up 36% on Q1 2024 and 17% more than Q4 2024.
Regionally, the biggest increase was found in Wales, which saw new home registrations jump by 116%. Registrations also rose significantly in the East Midlands (102%) and West Midlands (51%). Registrations were down 38% in London, which the NHBC attributes to the new building safety regime for high rise buildings and lower demand from housing associations.
Private sector registrations increased ‘a significant’ 62% year-on-year, with 20,653 in Q1 2025 compared to 12,747 in 2024. There was a 2% reduction in the in the rental and affordable sector, with 8,703 new homes registered in Q1 2025 and 8,888 during the same period in 2024. Apartment registrations across the UK were also down, decreasing by 3% in Q1 2025 compared to the same period in 2024.
All other house type registrations increased, with detached houses and bungalows seeing the highest rises at 63% and 54% respectively.
According to Steve Wood, CEO at NHBC, the figures indicate ‘a growing confidence in the market’. He explained:
“Although we can be distracted by global factors that continue to unsettle markets, the easing of inflation, lower mortgage rates, greater availability of lower deposit mortgages and a strong start to spring sales all point to improving prospects in UK house building.
“This is particularly true for low-rise housing and for regions outside London which are less affected by the delays in approvals from the Building Safety Regulator where the new gateway system is still bedding in.
“In addition, the industry has welcomed the government’s planned investment in infrastructure, skills and planning reform; over time, all of this will help housing supply.”
However, Wood urged developers not to sacrifice quality for quantity as the demand for affordable homes hots up. He said:
“The demand for affordable housing across the UK is acute, so we welcome the Government’s £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. The sector would encourage increased demand-side stimulus, including through the new Affordable Homes Programme as it is confirmed later in the year.
“Finally, it is worth a reminder that all new homes must be built to high quality standards. This should remain a key focus for all housing delivery, irrespective of tenure, during any period of growth.”
