New Home Registrations Up 33% in Q3 but Slowdown Ahead

UK NEW HOME registrations increased by 33% in the third quarter of 2022 compared to the same period last year, data released by NHBC shows.

A total of 44,729 new homes were registered to be built in Q3 2022 compared to 33,603 in Q3 2021. This is the highest Q3 figure since 2007, despite expectations that property sales will slow in the coming period due to higher mortgage rates and faltering consumer confidence.

Private-for-sale registrations were up by 26% to 32,702 (Q3 2021 25,862), whilst the affordable and build to rent sector grew by 55% overall, up from 7,741 in Q3 2021 to 12,027 in Q3 2022.

Apartments

New home registrations rose for every house type in Q3 2022 with a shift in mix back towards apartments with 9,006 registered in Q3 2022, up 114% on Q3 2021. 45% of all new apartments registered in Q3 2022 were in London.

10 out of 12 regions experienced growth in registrations in Q3 2022 vs Q3 2021 with London, Scotland, Wales, and West Midlands experiencing significant rises, due to lower levels in the previous year and the timing impact of some large site registrations. There were small dips in the South West and Northern Ireland with developers in these areas reporting a slight cooling of the market.

New home completions also increased from 32,100 in Q3 2021 to 34,977 in Q3 2022, despite some ongoing disruption in the supply chain.

Steve Wood, NHBC CEO

NHBC Chief Executive, Steve Wood, said: “Despite prevailing conditions, the third quarter was a strong one for new home registrations. In part this is the ‘bounce-back’ post the pandemic, but it also reflects a confidence that the underlying demand for new homes is holding across a range of tenures.

“That said, housebuilders and new home buyers are becoming more cautious, especially in the face of higher costs of living and open questions about the nature and length of any recession in the UK. It seems likely that a slowdown is coming which will at least help ensure that homes continue to be built to the quality required.”

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