Figures released by the National House Building Council (NHBC), the UK’s largest provider of new home warranties and insurance, show that private home completions fell by 20% in 2023.
The NHBC recorded 133,213 new homes were completed in total in 2023, down 12% on 2022. In contrast, the rental and affordable sector saw 45,649 homes, up 10% on the previous year and the highest figure ever recorded by the NHBC.
2023 also saw a significant reduction in new home registrations, falling to 105,449 from 189,009 in 2022, a drop of 44%. Every region of the UK saw a decrease, with the North West (-61%), West Midlands (-59%) and the East of England (-52%) seeing the biggest drops in the year.
Private sector registrations were hit hardest, down 53% on last year, while the rental and affordable sector saw a shallower decline with 40,572 registrations in 2023, down 22% on the previous year.
The demise of the bungalow continued with 1,466 registrations in 2023, 48% down on 2022 (2,819). Semi-detached homes saw the greatest number of registrations by house type at 31,363 in 2023, followed by detached homes (29,925) and apartments (25,099) respectively.
Steve Wood, CEO at NHBC, said: “Whilst there were considerable supply and demand pressures on the new homes market in 2023, it is very encouraging to see record numbers of new home completions in the affordable sector. Several major housebuilders have partnered with housing associations and Build to Rent providers, refocusing parts of their output to help address the demand for affordable homes. The backdrop of high interest rates, significant inflationary pressures and challenges with planning consents has suppressed private sale output in 2023. That said, there are some signs of demand returning to the market and we would expect an improved position in 2024 as consumer confidence begins to recover and mortgage rates start to fall.”
Looking to the year ahead, Steve Wood, added: “With a general election looming, we may also see new home-buyer incentives that influence build volumes. In the mid to long-term, the industry would welcome measures that restore consumer confidence and encourage market growth.”
