New data released today (14/11) by the National House Building Council shows that UK new home registrations increased by 33% in the third quarter of 2022 year on year. In total, 44,729 new homes were registered to be built in Q3 2022 compared to 33,603 in Q3 2021. This is the highest Q3 figure since 2007, despite expectations that property sales will slow in the coming period due to wavering consumer confidence and higher mortgage rates.
Private-for-sale registrations were up by 26% to 32,702 (Q3 2021 25,862), whilst the affordable and BTR sector grew by 55%, up from 7,741 in Q3 2021 to 12,027 in Q3 2022.
New home registrations rose for every house type in Q3 2022 with a shift back towards apartments with 9,006 registered in Q3 2022, up 114% on Q3 2021. 45% of all new apartments registered in Q3 2022 were in London.
Year on year, 10 out of 12 regions experienced growth in registrations in Q3 2022, with London, Scotland, Wales and West Midlands experiencing the most significant rises due to lower levels in the previous year and the timing impact of some large site registrations. The South West and Northern Ireland were the only regions to see drops in registrations, with developers in these areas reporting a slight cooling of the market.
New home completions also increased from 32,100 in Q3 2021 to 34,977 in Q3 2022, despite ongoing disruption in the supply chain.
Commenting on the latest data, NHBC Chief Executive Steve Wood, said: “Despite prevailing conditions, the third quarter was a strong one for new home registrations. In part, this is the ‘bounce-back’ post the pandemic, but it also reflects a confidence that the underlying demand for new homes is holding across a range of tenures.”
“That said, housebuilders and new homebuyers are becoming more cautious, especially in the face of the higher cost of living and open questions about the nature and length of any recession in the UK. It seems likely that a slowdown is coming which will at least help ensure that homes continue to be built to the quality required.”
