The latest NHBC report reveals a significant increase in new home registrations for Q3 2024, compared to the previous year.
- Registrations in Q3 2024 have risen by 40% from the same period in 2023, although they show a slight decline from Q2 2024.
- Despite regional variations, national figures indicate a stabilisation in the new home market, echoing a cautious optimism among builders.
- Government support is seen as a potential boost for future growth, contingent on improved economic conditions.
- Key challenges remain, including planning system hurdles and skills shortages, which need to be addressed to sustain growth.
The National House Building Council (NHBC) has released its latest figures, showing that 28,724 new homes were registered in the third quarter of 2024. This marks a notable 40% increase from the third quarter of 2023, when only 20,449 homes were registered. However, this upward trend is slightly tempered by a 1.3% decrease from the second quarter of 2024, which registered 29,093 new homes. These figures indicate a stabilisation in the market, a positive sign following the historical lows experienced during the COVID-19 pandemic.
Steve Wood, the NHBC chief executive, remarked that the current numbers suggest a steadying of new home registrations, with some early signs of increased activity at construction sites. He noted that achieving the government’s target of 1.5 million new homes will require a consistent rise in registrations, which depends on lower interest rates and greater confidence among consumers and investors. The funding announced by Chancellor Rachel Reeves in the autumn budget is expected to positively influence future housing supply, although the full effects are yet to be realised.
Across different regions in the UK, there have been varied responses. Notably, the southeast saw an 84% rise in registrations, while the northwest and Merseyside increased by 81%, and the northeast by 78%. In contrast, London experienced a significant 50% decrease, and Northern Ireland saw a reduction of 29%. This regional disparity highlights the uneven recovery and varying market dynamics across the country.
In the private sector, there were 19,879 registrations, marking a striking 58% increase compared to Q3 2023’s count of 12,583. Meanwhile, the rental and affordable housing sectors experienced a modest rise, with registrations reaching 8,845, an increase of 12% from the previous year’s 7,866. According to Steve Wood, housing association budgets are heavily focused on upgrading existing stock and managing temporary housing needs, rather than investing in new builds.
Looking ahead, there is a general sense of cautious optimism among house-builders for 2025, with the anticipation of a further upward trend in registrations. However, significant challenges remain, particularly regarding the planning system and skills shortages, which are crucial to address if growth is to be sustained.
The NHBC report underscores a stabilising trend in new home registrations, with cautious optimism for future growth.
