Increase in number of new affordable homes fails to offset decline in private sector

The number of new homes to be built for those in the affordable and rental sector in the UK continues to rise significantly but these gains have failed to offset the decline in the private sector registrations, according to the latest NHBC figures.

3,875 new homes were registered in the affordable and rental sector in August, a 19% increase year-on-year (3,252 in 2018), whilst home registrations in the private sector fell 20% to 8,420 (10,460 in 2018).

The overall number of new homes registered to be built by builders and developers across the UK in the month was down 10% compared to August 2018 (12,295 in 2019; 13,712 in 2018).

For the rolling quarter, between June and August, 40,213 new homes were registered compared to 42,329 in 2018 – a decrease of 5%. Within this, there was an 8% fall in the private sector, partially offset by 4% growth in the affordable and rental sector.

is the leading warranty and insurance provider for new homes in the UK and its registration statistics are a lead indicator for the new homes market.

Commenting on the latest figures, NHBC Chief Executive Steve Wood said: “The slowdown in overall registrations in August seems to be partly due to prevailing uncertainties in this pre-Brexit period. Nonetheless, it is encouraging to see growth coming through in the affordable and rental sector.”

NHBC UK statistics show that:

• During June’ 19 – August ‘19 the number of NHBC new home registrations was 40,213 compared to 42,329 a year ago.
• 27,795 were registered in the private sector, compared to 30,358 in the previous year.
• 12,418 were registered in the affordable and rental sector, compared to 11,971 in the previous year.

Full regional breakdown of total new homes registered during this period:

Registrations refer to the process of a builder registering a new plot/home to be built in the coming months or weeks, to be covered by NHBC’s ten-year Buildmark warranty. Completions refer to when a new home is completed as indicated by NHBC inspectors.

Changes can occur between figures published at different times owing to changes in policies and cancellations.

NHBC is the leading warranty and insurance provider for new homes in the UK. NHBC’s ten-year Buildmark warranty covers around 80 per cent of new homes built in the UK, having covered nearly eight million homes since it began and currently protecting around 1.5 million homes. NHBC is a non-profit distributing organisation with no shareholders.