"Prolonged wet weather has also hampered housebuilding output in Q1, with the south of England experiencing its wettest February since 1836, according to the Met Office, and many parts of southern England recording well over twice the average rainfall"
- Steve Wood - NHBC
New home registrations and completions fell during the first quarter of 2024 against the previous year, due to challenging economic conditions, skills shortages and the eighth wettest winter on record, but with registrations increasing monthly during the period, according to new homes warranty and insurance provider, NHBC.
For Q1 2024, it recorded 21,967 new home registrations, down 20% against Q1 2023.
Private homes saw 13,633 of these - a 21% drop. Those for the rental and affordable homes sector - despite housebuilders’ focus on affordable housing in a difficult market – also fell by 19% to 8,334 registrations.
Nine out of 12 UK regions saw registration declines against Q1 2023. The biggest falls were in the East Midlands at -43%, Wales (also at -43%), and North West and Merseyside (-41%). Meanwhile, the three regions to experience rises were London (+2%), Scotland (+4%) and Northern Ireland and the Isle of Man (+23%).
Property types
Registrations fell for each house type during Q1 2024. Those for apartments recorded the lowest fall at -12%, thanks to the “relative strength” of the rental and affordable sector. There was a 26% decline in terraced property registrations, with those for detached homes falling 24% and registrations for semi-detached abodes down 19%. The biggest fall continued to be for bungalows at -43%.
Q1 2024 completions were down 13% against Q1 2023, at 26,240 new homes. Again, the private sector saw the largest fall here – a 19% decrease to 15,599 homes. Rental and affordable home completions dipped only 1% to 10,641.
At the same time, month-on-month increases in registrations during the quarter suggested “tentative signs of growth.”, NHBC said.
Steve Wood, NHBC’s CEO, said: “Housebuilders are cautiously optimistic and it is encouraging to see signs of growth, with a month-on-month increase in registrations since January.
“This is despite a cumbersome planning system that continues to impede output and a national skills gap that means almost 225,000 extra workers will be required to meet expected UK construction demand by 2027.”
He added: “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.
“Prolonged wet weather has also hampered housebuilding output in Q1, with the south of England experiencing its wettest February since 1836, according to the Met Office, and many parts of southern England recording well over twice the average rainfall.”
