Door new-build

New-build home registrations hit 14-year high as demand surges

With demand rising for new-build homes, registrations and completions are seeing strong growth across the UK. What is the outlook for the coming months?

The latest data from the National House Building Council (NHBC), the UK’s leading new home warranty and insurance provider, reveals the second quarter of 2021 was the strongest quarter for new-build home registrations since Q3 2007. The number of home registrations hit a 14-year high of 46,452.

In the owner-occupied sector, 35,495 new-build homes were registered in this past quarter. And 10,957 homes were registered within the rental sector, which includes both build-to-rent and affordable.

There has been particularly strong growth compared to the second quarter of 2020. This is when the initial lockdown restrictions were at their height, and many building sites were halted. Registrations are up 130%, while completions are up 213% to 34,644 homes.

Steve Wood, CEO of NHBC, says: “Our latest quarter’s registration statistics show the remarkable recovery the housebuilding industry has made since activity ground to a halt on site in April and May last year. A 14-year-high in new home registrations is quite something in the present environment.”

What regions are seeing the strongest uplift?

All UK regions saw an increase in new-build home registrations in the second quarter of this year compared to the same period in 2020. The highest uplift was seen in the north-east of England with a whopping 436% growth.

Scotland followed closely behind with a 417% increase. Then, Scotland and the Isle of Man both saw 230% growth. And the north-west recorded an impressive 212% rise. The lowest level of growth was in London with a 23% uplift. This shows the housebuilding sector has bounced back quickly from the COVID-19 pandemic.

Paul Edwards, the senior regional director at NHBC, explains: “Confidence in new home building remains strong in England in the second quarter.

“With most regions now on par or ahead of pre-pandemic registration levels, builders and developers continue to respond positively to demand as they seek to increase the supply of new homes.”

Increasing demand for new-build homes

Developers and housebuilders have responded to the strong demand for new-builds. And this new data shows that supply is growing rapidly to help keep up with the growing demand.

Homebuyers and investors alike are seeing the benefits of buying new-build homes. New-builds are often much more appealing compared to older, tired properties. There usually won’t be issues, such as damp, condensation or unreliable boilers and old heating systems.

Built to the latest standards, new-builds are greener properties with the majority having an A or B energy efficiency rating and are substantially cheaper to run. This is becoming a bigger priority for buyers, tenants and property investors alike.

Building on the back of the growing demand, the delivery of new-builds even hit the highest figure in over 20 years. This further shows the housebuilding sector has continued its recovery from the disruption caused by the pandemic. And this is bringing forward much-needed additional housing.

Steve Wood comments: “Despite the combined effects of the pandemic and Brexit causing labour shortages and some disruption to the supply of materials, the outlook for the medium term is a positive one.

“Demand for homeownership is holding strong alongside significant investor interest in the growing build to rent and retirement living sectors.”

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