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In the first quarter of 2024, the UK housing construction industry experienced a downturn in new home registrations and completions, according to the latest report by the National House Building Council (NHBC). This decline was influenced by a combination of economic challenges, labour shortages, and one of the wettest winters on record.
What are the key statistics?
- New Home Registrations: Fell by 20% from Q1 2023, totaling 21,967.
- Private Home Registrations: Decreased by 21% to 13,633.
- Rental and Affordable Homes: Dropped by 19% to 8,334.
- Home Completions: Declined by 13%, with 26,240 new homes completed.
Regional Impact:
- The downturn was widespread, affecting nine out of twelve UK regions.
- Most significant decreases: East Midlands and Wales (down 43%), North West and Merseyside (down 41%).
- Exceptions with increases: London, Scotland, Northern Ireland, and the Isle of Man saw slight upticks.
Changes by House Type:
- All categories of homes saw declines in registrations:
- Bungalows: Largest decrease at 43%.
- Apartments: Smallest decrease at 12%, showing some resilience in the rental and affordable housing sector.
- Terraced, Detached, and Semi-detached Homes: Saw declines ranging from 19% to 26%.
This data highlights the challenges faced by the UK housing market in the early months of 2024, with industry efforts to focus on affordable housing being undermined by broader economic pressures and adverse weather conditions. The slight improvements in some regions and specific housing sectors suggest a potential for partial recovery, depending on future economic and environmental factors.
Despite the drop, month-on-month increases in registrations during the quarter suggested “tentative signs of growth”.
The NHBC said: “Housebuilders are cautiously optimistic and it is encouraging to see signs of growth, with a month-on-month increase in registrations since January,”
Steve Wood, NHBC’s CEO, said: “This is despite a cumbersome planning system that continues to impede output and a national skills gap that means almost 225,000 extra workers will be required to meet expected UK construction demand by 2027.”
View the full report here:
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