Latest new home registration figures have pointed to the true extent of the slowdown in building activity as interest rates hit a 15-year high.
All new home registrations plunged 42% in the second quarter compared to the same period last year, with completions falling by 11%. Private home registration collapsed by just over half on a year ago.
A total of 38,044 new homes were registered with the National House Building Council in the months of April, May and June, compared to 65,645 in the second quarter of 2022.
The North West, North East and Eastern regions bore the brunt of the quarterly slump in activity.
London stood out as the only region to show growth at 9% on a year ago, presumed to reflect confidence in the multi-storey build to rent sector.
The depth of the recorded fall is also due to the surge in registrations a year ago, when there was a race to beat the deadline for changes to building regulations in relation to greater energy conservation.
NHBC CEO Steve Wood said: “It is hardly surprising that consumer demand for new homes began easing in the second quarter.
“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.”