New figures recently released by the National House Building Council (NHBC) reveal that 28,724 new homes were registered to be built in Q3 2024, representing a substantial 40% increase compared to Q3 2023 (20,449) and running level with Q2 2024 (29,093). These registration figures serve as a record of when a developer has registered their intent to build a new home.
Maintaining a steady pace
Steve Wood, CEO at NHBC, comments on the latest findings: "Our quarterly figures show that new home registrations are maintaining a steady pace, with signs of increased activity on site and an emerging mood of cautious optimism amongst house builders. While this is encouraging, a further uplift in registrations is needed to move us closer to the Government's 1.5 million new homes target. This will depend on continued easing of interest rates and a rise in confidence amongst consumers and investors."
Wood also highlights the significance of the funding pledged by Chancellor Rachel Reeves in her first Autumn Budget: "The funding pledged was welcomed and should, over time, have a positive impact on housing supply."
South East sees largest increase
The Q3 new home registrations data show that 10 out of 12 regions across the UK experienced a rise in registrations in Q3 2024 compared to Q3 2023. The South East saw the largest increase at 84%, followed by the North West and Merseyside (81%), and the North East (78%). However, London and Northern Ireland saw declines in registrations, with 50% and 29% decreases, respectively.
In Q3 2024, there were 19,879 private sector registrations, representing a 58% increase compared to Q3 2023 (12,583). The rental and affordable sector saw more modest increases, with 8,845 registrations in Q3 2024, up 12% on Q3 2023 (7,866).
Upward trajectory envisaged for 2025
Steve Wood adds: "While private sector registrations experienced a significant uplift in Q3, up 58% compared to the previous year, and rental and affordable registrations were also up, by 12%, this belies challenging conditions for housing associations. Capital budgets are focused on the remediation and retrofit of existing stock, alongside high spends on temporary housing. With house builders cautiously optimistic about growth prospects, we anticipate an upward trajectory for new home registrations in 2025. However, we must tackle the stubborn barriers in the planning system and around skills shortages."
