Optimism Amongst House Builders as New Home Registrations Rise 40%

There is a ‘cautious optimism’ amongst house builders in the UK after the number of new home registrations increased – but a further uplift is required before the Labour government can reach their 1.5 million new homes target.

Read on to find out all the details, and why this is a good sign for the housing industry.

New home registrations increase

In the third quarter of 2024, 28,724 new homes were registered across the UK. This is a massive increase on the 20,449 new homes that were registered in the same period in 2023, according to the National House Building Council (NHBC).

The latest quarterly figure is in line with the 29,093 new homes that were registered during Q2 of 2024.

This shows a huge improvement and a clear direction of travel for the Labour government, which has been in power since July 2024.

A breakdown of the new home registration figures

While the new home registration figures are optimistic, how do they look when broken down into property types?

Within the quarter three figures, the majority of the new home registrations were for detached homes – 10,167 to be precise. This is a figure that has risen 80% compared to 2023 Q3.

There was also a huge increase in semi-detached home registrations. In 2024 Q3, 9,373 semi-detached homes were registered – a 62% increase.

In terms of terraced housing, 4,460 new homes were registered – a 30% increase from 2023 Q3. Bungalows were also up by 48%, with 338 new homes registered.

However, apartment registrations declined by 18%, with 4,386 registered.

Which areas experienced the most new home registrations?

The NHBC stated the most new home registrations came in the North East, North West and South East of England.

Across the UK, there were 19,879 private sector registrations in Q3, which is an increase of 58% compared to 2023 Q3.

The rental and affordable housing sector also saw an increase of 12% from 2023, too. In total, 8,845 homes were registered.

How has the NHBC obtained these figures?

The National Housing Building Council has a 70%-plus share of the UK warranty market. Its figures indicate new property stock in the pipeline because homes are registered with the NHBC before they are built.

Therefore, the NHBC figures provide clarity on the path the housing market is taking in the near future.

Have enough new homes been registered?

Steve Wood, the chief executive of the National House Building Council, stated that while there is “cautious optimism” around the increase of new homes registered, there still needs to be an uplift to reach the government’s target.

“Our latest quarter’s figures show that new home registrations are holding steady with some signs of increased activity on site and an emerging mood of cautious optimism amongst house builders,” he said.

“A further uplift in registrations is needed to move us towards the Government’s 1.5 million new homes target, with this dependent on continued easing of interest rates and a rise in confidence amongst consumers and investors.

“The funding pledged by Chancellor Rachel Reeves in her first autumn Budget was welcomed and should, over time, have a positive impact on housing supply,” Wood stated.

Summary

So, it’s clear that the housing market is headed in the right direction under the Labour government.

While the numbers are positive, more can still be done. It must be if Labour are to reach their target of 1.5 million new homes built during their five-year tenure in government.

If you would like to find out more about the current state of the housing market, we at ABC+ Warranty are always following the latest trends and developments.

Check out our other blogs and have a look through our building warranties. For anything else, don’t hesitate to contact us by calling 0161 928 8804.