"Although we can be distracted by global factors that continue to unsettle markets, the easing of inflation, lower mortgage rates, greater availability of lower deposit mortgages and a strong start to spring sales all point to improving prospects in UK housebuilding"
- Steve Wood - NHBC
Private sector home registrations surged 62% in the first quarter of 2025 compared to Q1 2024, according to the latest figures from NHBC.
A total of 20,653 private sector homes were registered between January and March, up from 12,747 in the same period last year. This helped drive overall new home registrations to 29,356, marking a 36% year-on-year increase and a 17% rise compared to the previous quarter.
The affordable and rental sector, by contrast, saw a modest 2% decline in registrations, with 8,703 new homes registered during the quarter.
However, apartment registrations fell 3%, which NHBC attributed to ongoing delays in high-rise approvals due to the new Building Safety Regulator processes, as well as reduced activity from housing associations prioritising existing stock. London saw the biggest regional decline in registrations, down 38% year-on-year.
Outside the capital, the picture was more positive. Wales led with a 116% increase in registrations, followed by the East Midlands (102%) and West Midlands (51%). Detached houses and bungalows saw the largest increases among house types, at 63% and 54% respectively.
Despite the rise in registrations, completions dipped slightly. A total of 26,120 homes were completed in Q1 2025, down 1% from Q1 2024.
“Our figures for the first quarter of this year indicate growing confidence in the market with a 36% increase in developers registering their intent to build a new home compared to the same period last year," comments NHBC’s CEO, Steve Wood. “Although we can be distracted by global factors that continue to unsettle markets, the easing of inflation, lower mortgage rates, greater availability of lower deposit mortgages and a strong start to spring sales all point to improving prospects in UK housebuilding."
“This is particularly true for low-rise housing and for regions outside London which are less affected by the delays in approvals from the Building Safety Regulator where the new gateway system is still bedding in."
He added, “In addition, the industry has welcomed the government’s planned investment in infrastructure, skills and planning reform; over time, all of this will help the housing supply.”
On affordable housing, Wood said: “The demand for affordable housing across the UK is acute, so we welcome the government’s £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. The sector would encourage increased demand-side stimulus, including through the new Affordable Homes Programme, as is confirmed later in the year.
“Finally, it is worth a reminder that all new homes must be built to high-quality standards. This should remain a key focus for all housing delivery, irrespective of tenure, during any period of growth.”
