New home registrations fall in first quarter of 2024


NHBC

NHBC has revealed that there were 21,967 new home registrations in quarter one of 2024, down 20% on Q1 2023

In the same period, 26,240 new homes were completed, down 13% on Q1 2023 (30,071).

The decline in new home registrations is a direct consequence of the ongoing economic challenges and the industry’s persistent skills shortages.

These factors, combined with the eighth wettest winter on record, have significantly affected the housing market.

Steve Wood, CEO at NHBC, said: “Our Q1 2024 figures reflect prevailing market conditions. Rises in the Bank of England’s base rate have driven mortgage rates higher, leading to a drop in new home purchases and a slowdown in house price growth.”

Signs of growth seen in increasing new home registrations

Despite this, there are tentative signs of growth, with new home registrations increasing month-on-month in the first quarter.

In March, 8,320 new homes were registered to be built, compared to 6,557 in January and 7,090 in February.

Quarter-one registrations were also higher than in Q3 and Q4 2023.

Regional variations in UK housing registrations

Across the UK, nine of twelve regions saw a fall in new home registrations compared to Q1 2023. The biggest drops were seen in the East Midlands (43%), Wales (43%), and North West and Merseyside (41%).

Registrations rose in London (+2%), Scotland (+4%), and Northern Ireland and the Isle of Man (+23%).

In Q1 2024, private sector registrations totalled 13,633, marking a 21% decrease from Q1 2023’s figure of 17,339.

Despite major house builders’ efforts to refocus output towards affordable housing, both the rental and affordable sectors experienced a downturn.

Registrations totalled 8,334 in Q1 2024, a 19% decline from Q1 2023’s 10,280.

Across various house types, bungalows saw the most significant decline at 43%, followed by terraced properties at 26% and detached homes at 24%.

In contrast, apartment registrations experienced the smallest decrease at -12%, reflecting the resilience of the rental and affordable sector.

Steve Wood, CEO at NHBC, concluded: “We are seeing early signs of growth returning to the private sector, and affordable house building is holding up well, but skills and planning challenges must be addressed to truly accelerate market recovery.”

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