The National House Building Council highlights significant hurdles in achieving housing goals.
- Current building volumes must double to meet Labour’s 1.5 million new homes pledge.
- NHBC reports a 23% decline in new home registrations compared to last year.
- Completions in Q2 2024 decreased by 6%, despite quarterly growth.
- NHBC stresses the need for skilled labour and infrastructure to meet targets.
The National House Building Council (NHBC) has drawn attention to substantial challenges the government faces in its pursuit of meeting housing targets. With the new administration’s plan to deliver 1.5 million homes over the next five years, the NHBC notes a significant shortfall in current building volumes. There is a clear indication that building volumes must effectively double to align with the ambitious targets set forth by Labour.
The NHBC’s latest figures indicate a notable decline in new home registrations, with numbers falling 23% from 37,861 in the second quarter of 2023 to 29,281 in the same period in 2024. Even though there was an increase in quarterly figures, with a 34% rise from the first quarter, the yearly comparison presents a stark contrast, reflecting the need for a considerable boost in efforts to meet housing goals.
Furthermore, while new home completions saw a 29% quarterly improvement, they are still 6% lower than the completions recorded in Q2 2023, dropping from 36,145 to 33,847. This persistent lag underlines the urgency in addressing the bottlenecks hindering progress towards the 1.5 million homes target.
According to Steve Wood, NHBC chief executive, the government’s initiatives, such as new home-buyer incentives, changes in planning policies, and investments in essential infrastructure, are steps in the right direction but are insufficient on their own. He emphasizes that closing the national skills gap remains crucial, particularly with an ageing workforce and a shortage of skilled labourers posing potential setbacks to housing plans. To mitigate this, NHBC is collaborating with builders, contractors, and government agencies to establish a national network of training hubs aimed at upskilling new talent.
The NHBC underscores the pressing need for enhanced efforts in construction and skilled labour to achieve housing targets.
