Latest numbers from the National House Building Council (NHBC), the UK’s largest new home warranty provider, show that 28,724 new homes were registered to be built in Q3 2024, up 40% on Q3 2023 (20,449) and just 1.3% down on the second quarter of this year (29,093).
New home registrations are still significantly down on previous years – running at low levels last seen during the covid pandemic, as the chart below shows – but at least things appear to have stopped getting any worse.
NHBC chief executive Steve Wood said: “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 among house-builders.
“A further uplift in registrations is needed to move us towards the government’s 1.5 million 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.”
Across the UK, 10 out of 12 regions saw a rise in registrations in Q3 2024 compared to the same period in 2023, with the biggest increases in the southeast (+84%), northwest and Merseyside (+81%) and the northeast (+78%). Registrations were down 50% in London and down 29% in Northern Ireland.
There were 19,879 private sector registrations in Q3 2024, up a substantial 58% on Q3 2023 (12,583). The rental and affordable sector saw more modest increases, with 8,845 registrations in Q3 2024, up 12% on Q3 2023 (7,866).
Steve Wood said that housing association budgets are focused on the remediation and retrofit of existing stock, alongside high spends on temporary housing, rather than new build.
He concluded: “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.”
