New home registrations up by 40% in three months amid 'cautious optimism'

New home registrations soared by 40% in the third quarter of this year againtlast year's figures, according to an industry heavyweight.

An total of 28,724 new homes were registered for construction across the UK during the third quarter of this year, showing a leap from the 20,449 during the same period in 2023, the National House Building Council (NHBC) revealed. This latest count is on par with the 29,093 new home registrations seen in the second quarter of this year.

Breaking down the figures, detached homes made up 10,167 registrations in the third quarter of 2024, increasing by 80% compared with a year earlier. There were 9,373 semi-detached homes registered, which represents a 62% rise from last year.

The report highlighted an increase of 30% for terraced homes, totalling 4,460 registrations, compared to the third quarter of 2023. Bungalow registrations saw annual growth of 48%, with 338 homes on the list. Apartment registrations dipped by 18%, with a total of 4,386.

Holding over 70% of the UK warranty market share, the NHBC's figures are a strong indicator of the stock of yet-to-be-built properties, as they're registered with the NHBC ahead of construction.

NHBC's chief executive, Steve Wood, said: "Our latest quarter’s figures show that new home registrations are holding steady with some signs of increased activity on site and an emerging mood of cautious optimism amongst house builders."

"A further uplift in registrations is needed to move us towards the Government’s 1.5 million new homes target, with this dependent on continued easing of interest rates and a rise in confidence amongst consumers and investors. The funding pledged by Chancellor in her first autumn was welcomed and should, over time, have a positive impact on housing supply."

In July, the Government announced that all councils in England would be required to meet new, compulsory housing targets to facilitate the delivery of an additional 1.5 million homes. Despite a recent drop in the Bank of England base rate, several leading mortgage lenders have raised some of their rates.

Factors such as higher swap rates, which influence loan pricing, changing expectations for interest rates, and the need to manage applications for competitive deals, have been cited as reasons for some rates increasing. The NHBC reported significant increases in new home registrations in the South East, North West and North East of England.

Across the UK, there were 19,879 private sector registrations in the third quarter of 2024, a 58% increase compared to the same period in 2023. The rental and affordable sector saw more modest growth, with 8,845 registrations in the third quarter, a 12% increase on the same quarter in 2023.

Mr Wood highlighted that the modest increase in rental and affordable home registrations "masks challenging conditions for housing associations where capital budgets are focused on the remediation and retrofit of existing stock, alongside high spends on temporary housing".

He further commented: "With house builders cautiously optimistic about growth prospects, we anticipate an upward trajectory for new home registrations in 2025, but with the caveat that the persistent obstacles in the planning system and around skills shortages must be addressed."

The NHBC’s data also revealed that 27,868 new homes were completed in the third quarter of 2024, a decrease of 9% compared to the same period in 2023.

Here are the numbers of new homes registered to be built in the third quarter of this year, and the percentage increase or decrease in registrations compared with the third quarter of 2023, according to the NHBC:

North East, 1,421, 78%

North West and Merseyside, 2,760, 81%

Yorkshire and the Humber, 2,013, 56%

West Midlands, 1,940, 61%

East Midlands, 3,274, 74%

Eastern England, 3,167, 65%

South West, 3,287, 73%

London, 1,334, minus 50%

South East, 5,153, 84%

, 2,432, 12%

Wales, 1,056, 3%

Northern Ireland and Isle of Man, 887, minus 29%.