New homes slowdown in Q3, according to latest NHBC stats

24 October 2019

NHBC’s latest statistics show the number of new homes registered to be built in the UK during the last three months is 9% down on last year’s levels, despite a significant increase in the affordable and rental sector.

In total 39,364 new homes were registered over the last three months compared to 43,403 a year ago.

In the private sector 27,916 homes were registered, 16% down on the 33,110 12 months ago. Continuing the trend over recent months, the affordable and rental sector (which includes shared ownership and homes built for private, social or affordable rent) increased by 11% compared to 2018 figures (11,448 v 10,293).

During Q3 there were increases in three out of 12 UK regions, with the West Midlands reporting a 52% increase in registrations (4,760 v 3,136), a result of 1,200 plots registered in Birmingham for the 2022 Commonwealth Games Athletes’ Village.

NHBC 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: “It is great to see the strength of the affordable and rental sectors, whilst we would hope that the slowdown in private sector registrations is transient, and a function of short-term Brexit uncertainties.

“In any event, NHBC will continue to work with builders to raise standards and improve quality for homeowners.”

NHBC UK statistics show that:

  • During July ’19 – Sept ’19 the number of NHBC new home registrations was 39,364 compared to 43,403 a year ago.
  • 27,916 were registered in the private sector, compared to 33,110 in the previous year.
  • 11,448 were registered in the affordable and rental sector, compared to 10,293 in the previous year.

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

NHBC – UK Registrations by Region

 

 

England – Regions

July 19 – Sept 19

July 18 – Sept 18

North East

1,849

2,168

North West & Merseyside

3,161

4,273

Yorkshire & Humberside

2,284

2,901

West Midlands

4,760

3,136

East Midlands

3,232

3,073

Eastern

4,143

3,808

South West

3,055

4,604

London

5,143

6,005

South East

6,735

7,006

Total England

34,362

36,974

Scotland

2,820

3,681

Wales

1,045

1,473

Northern Ireland & Isle of Man

1,137

1,275

Total UK

39,364

43,403

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.