Government Anxious As New Build Registrations Fall 9%

New build home construction has fallen considerably in the third quarter of 2019. 

According to newly released figures from the National Housing Building Council (NHBC), during the last three months, the number of new homes registered to be built in the UK has decreased by 9% when compared with 2018’s output. 

In 2018, 43,403 homes were registered in the third quarter of the year, this has slipped to 39,364 in 2019. 

Private sector registrations have suffered more than any other, tumbling by 16% on the figures from a year ago. The 27,364 falling from 33,110 from 2018. 

However, there is a clear governmental drive towards producing more affordable housing with figures in the third quarter of the year increasing by 11% when compared with the construction output from 2018. 

Overall, affordable housing registrations, including public and private rental sector builds and shared ownership homes increased from 3,136 to 4,760 in Q3 2019. 

Areas where regeneration projects are in full swing are also enjoying a moment of construction buoyancy. The Perry Barr area of Birmingham has seen the West Midlands increase new build registrations by 52% thanks to the Birmingham 2022 Commonwealth Games Athletes’ Village.  

Recently, the Government released figures suggesting new build starts in England had fallen for the fifth out of six quarters and the third consecutive quarter as the construction sector remains concerned by political uncertainty. 

The 37,220 building starts in the second quarter of 2019 represented a 2% decrease on the opening quarter’s construction output. 

Furthermore, new build starts were down 8% on the figures released a year earlier. Housing Association and social housing starts declined by 4% whilst private enterprise tenure fell by 2%. 

Steve Wood, NHBC Chief Executive, 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.” 

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