In Q2 2023, 24,783 private sector homes were registered. The affordable and rental sector saw less of a decline during the quarter covering April, May and June with the effects of housebuilders making bulk sales to affordable housing. But registrations here were still 14% down on Q2 2022 at 13,261.
Total new home registrations, therefore, fell 42% to 38,044. NHBC noted that changes to Building Regulations the previous year had “accelerated registration volumes”.
Meanwhile, registrations in London during the latest period grew 9% against Q2 2022 to 4,405 new homes. NHBC said this may have been due to housebuilders’ larger focus on “alternative residential markets”, including build-to-rent.
And private new home completions in Q2 2023 declined 18% to 24,746. Completions under the affordable and rental sector rose 8% to 11,190, with the private sector causing an overall decline of 11% as mortgage rate increases impacted demand.
While London’s new home registrations improved in Q2 2023, NHBC highlighted a “mixed picture” across the UK. Wales’ registrations lifted 1% against Q2 2022 to 1,175 homes. But the North West, North East and Eastern regions saw the biggest registration falls at -67%, -60% and -56% respectively.
Registrations for all house types experienced a decline in Q2 2023, with those for detached homes showing the steepest drop at 54% down to 11,325. Semi-detached home registrations fell 44% on Q2 2022 to 11,399. Those for apartments fared better but were still 13% lower at 8,896.
Steve Wood, NHBC's CEO comments: “With mortgage rates at a 15-year high, volumes of homes built for private sales have weakened, although this is partly offset by bulk sales into affordable housing markets.”
“The government’s renewed focus on housing policy is welcomed, however, a more favourable environment will be reliant on a fall in inflation, easing of mortgage rates and action to address the key supply-side constraints of planning and nutrient neutrality.”
