In the third quarter of 2024, there was a significant increase in the number of new homes registered to be built compared to the same period in 2023. According to the National Home Building Council, a total of 28,724 new homes were registered, marking a 40% increase from the previous year.
Steve Wood, the chief executive of the National Home Building Council, expressed his optimism about the current state of new home registrations. He mentioned that there are some signs of increased activity on construction sites and a sense of cautious optimism among house builders. However, he also emphasized the need for a further increase in registrations to meet the Government’s target of 1.5 million new homes. This would require continued easing of interest rates and a boost in confidence among consumers and investors.
The data revealed that 10 out of 12 regions in the UK experienced a rise in registrations in Q3 2024 compared to Q3 2023. The regions with the most significant increases were the South East (+84%), North West and Merseyside (+81%), and the North East (+78%). On the other hand, registrations declined in London (-50%) and Northern Ireland (-29%).
In terms of the sector breakdown, there were 19,879 private sector registrations in Q3 2024, indicating a substantial 58% increase from the previous year. The rental and affordable sector also saw growth, with 8,845 registrations in Q3 2024, up 12% from Q3 2023.
Wood highlighted the positive trend in private sector registrations, which experienced a significant uplift in Q3. He also acknowledged the challenges faced by housing associations, where capital budgets are primarily allocated to the remediation and retrofitting of existing housing stock, as well as temporary housing solutions.
Looking ahead, Wood anticipated a continued upward trajectory for new home registrations in 2025. However, he emphasized the importance of addressing persistent barriers in the planning system and tackling skills shortages in the construction industry to support this growth.
Overall, the increase in new home registrations is a positive indicator for the housing market, reflecting a sense of optimism among builders and developers. The Government’s target of 1.5 million new homes will require sustained efforts and support to overcome existing challenges and ensure continued growth in the sector.
