New Home Registrations Drop By 44% As Affordable Homes Hit All-Time High -

THE NUMBER of new home registrations dropped 44% to 105,449 in 2023, compared to developers registering their intent to build a new home the previous year.

Overall, just 133,213 new homes were completed in 2023, down 12% on 2022 (151,308), according to the latest figures released by the National House Building Council (NHBC), provider of new home warranties and insurance.

While private sector registrations plummeted, 45,649 new homes were completed in the rental and affordable sector. This represents an increase of 10% on 2022 and the highest figure ever recorded by NHBC. In contrast, private sector completions were down 20%.

New Home Registrations

Within the overall, nationwide decrease in new home registrations, all regions saw a fall in registrations, with the biggest drops in the North West (-61%), West Midlands (-59%) and Eastern region (-52%).

Private sector registrations were hardest hit, down 53% on last year at 64,877 versus 136,805 in 2022. The rental and affordable sector saw a shallower decline with 40,572 registrations in 2023, down 22% on the previous year (52,204).

The demise of the bungalow continued with 1,466 registrations in 2023, 48% down on 2022 (2,819). Semi-detached homes saw the greatest number of registrations by house type at 31,363 in 2023, followed by detached homes (29,925) and apartments (25,099) respectively.

Supply and Demand Pressures

Steve Wood, NHBC CEO

Steve Wood, CEO at NHBC, said: “Whilst there were considerable supply and demand pressures on the new homes market in 2023, it is very encouraging to see record numbers of new home completions in the affordable sector. Several major house builders have partnered with housing associations and Build to Rent providers, re-focusing parts of their output to help address the demand for affordable homes.

“The backdrop of high interest rates, significant inflationary pressures and challenges with planning consents has supressed private sale output in 2023. That said, there are some signs of demand returning to the market and we would expect an improved position in 2024 as consumer confidence begins to recover and mortgage rates start to fall.”

“With a general election looming, we may also see new home-buyer incentives that influence build volumes. In the mid to long-term, the industry would welcome measures that restore consumer confidence and encourage market growth.”

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