Data released by the UK’s largest new home warranty and insurance provider, the National House Building Council (NHBC), show that new home registrations grew by 40% year-on-year in Q3 2024.
The quarter saw 28,724 new homes registered to be built, a significant increase from 20,449 in the quarter of the previous year. The figure remained roughly level with Q2 2024, where 29,093 houses were registered.
Steve Wood, CEO at NHBC, commented: “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 housebuilders.”
“A further uplift in registrations is needed to move us towards the government’s 1.5million 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.”
The increase was seen across most of the UK, with 10 out of 12 regions seeing a rise in registrations in Q3 year-on-year. The biggest increases were seen in the South East with 84%, the North West and Merseyside (81%) and the North East (78%). London (-50%) and Northern Ireland (-29%) were the only regions to see a decline in registrations.
The biggest increases were seen in the private sector, with 19,879 registrations in Q3 2024, up 58% on the previous year. The rental and affordable sector saw a more modest increase, growing 12% year-on-year to 8,845.
Steve Wood, CEO at NHBC explains: “Private sector registrations experienced something of an uplift in Q3, up 58% compared to the previous year. Rental and affordable registrations were also up, by 12%, but this belies challenging conditions for housing associations where capital budgets are focused on the remediation and retrofit of existing stock, alongside high spends on temporary housing.
“With housebuilders 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.”
