"At NHBC, we are focused on supporting developers to ensure that new homes are built to the quality that owners and occupiers should expect. This is particularly important in periods of growth."
- Steve Wood - NHBC
New home registrations across the UK saw slight growth in the second quarter of 2025, with private sector activity showing a 6% increase year-on-year, according to figures released by the National House Building Council (NHBC).
In total, 20,924 private sector homes were registered during Q2 2025, up from 19,728 in the same quarter of 2024. Registrations in the rental and affordable housing sector rose by 1% year-on-year to 9,481 homes.
Combined, the figures brought total UK home registrations for the quarter to 30,405, reflecting a 4% increase both compared to Q2 2024 and to Q1 2025.
The rental and affordable sector experienced a 6% quarter-on-quarter rise in registrations, coinciding with the government’s announcement of its ten-year £39 billion Social and Affordable Homes programme. The scheme was introduced by chancellor Rachel Reeves during the quarter.
Completions, however, moved in the opposite direction. NHBC recorded 32,434 new home completions in Q2 2025, a 5% decline compared with the same period in 2024. Private sector completions totalled 21,553, down from 22,115, while rental and affordable completions fell from 11,902 to 10,881.
Across the regions, six of the UK’s 12 areas reported year-on-year increases in registrations for the second quarter. Yorkshire and the Humber led the gains with a 96% rise, followed by the South West at 75% and Northern Ireland at 44%.
London experienced the most significant fall in new home registrations, dropping 59% compared to Q2 2024. NHBC cited ongoing difficulties with building safety regulations affecting high-rise developments and limited activity among housing associations as contributing factors.
By housing type, apartments were the only category to register a decline, falling 23% year-on-year in Q2 2025. In contrast, registrations for terraced houses increased by 33%, the highest among all property types. Bungalows saw a 4% increase, following a 54% rise in the previous quarter.
“There has been modest growth in housebuilding registrations in Q2 compared to last year, signalling an uplift in confidence from developers, especially in low-rise housing,” said Steve Wood, NHBC’s chief executive. “While some areas of the market remain subdued, we remain optimistic about the longer term as planning and land restraints are increasingly unblocked, mortgage rates ease, and the government sustains a focus on new home delivery.”
On the topic of affordable housing, he commented: “The demand for social and affordable homes across the UK is acute, so it is encouraging to see long-term targeted funding for this sector. At NHBC, we are focused on supporting developers to ensure that new homes are built to the quality that owners and occupiers should expect. This is particularly important in periods of growth.”
Looking back to Q1 2025, private sector registrations had risen by 62% year-on-year. Wood suggested this reflected a wider boost in market confidence, influenced in part by lower mortgage rates. He noted that improved conditions were more evident in low-rise developments and in areas outside London, which have been less impacted by delays stemming from the Building Safety Regulator’s approval processes.
