New home registrations fell by 44% last year, according to latest industry data

06 February 2024 , 15:59

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The number of new home registrations plunged in 2023 (Image: PA Archive/PA Images)

Industry figures reveal that new home registrations saw a steep drop of 44% in 2023 compared to the previous year.

According to the National House Building Council (NHBC), there were only 105,449 registrations which significantly decreased from the 189,009 in 2022. Registrations for private sector homes were hit hardest, suffering a huge fall of 53%.

The dip was less severe in the rental and affordable sector where registrations were down by 22%. NHBC also highlighted the continued decline of bungalows in 2023. Registrations fell by 48%, down to 1,466 from 2,819 in 2022.

Meanwhile semi-detached homes topped the list in terms of registrations, followed by detached homes and apartments. Holding a strong share at 70%-80% of the UK warranty market, NHBC's figures are pivotal as they indicate the stock of upcoming new properties that are registered with NHBC prior their construction.

On another note, the council confirmed that 133,213 new homes were completed in 2023. Though it presents a downhill trajectory of 12% in comparison to 2022's figure of 151,308, this didn't hold back the growth other sectors experienced.

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For instance, in the rental and affordable sector, 45,649 new homes were completed, marking an increase of 10% from 2022. This was noted as the highest figure since NHBC began recording data in 1990. Nevertheless, the completion of private sector homes took a 20% tumble.

Sharing his views on these findings, NHBC chief executive Steve Wood added: "Whilst there were considerable supply and demand pressures on the new homes market in 2023, it is very encouraging to see record numbers of new home completions in the affordable sector."

"Several major housebuilders have partnered with housing associations and build-to-rent providers, re-focusing parts of their output to help address the demand for affordable homes. The backdrop of high interest rates, significant inflationary pressures and challenges with planning consents has suppressed private sale output in 2023."

"That said, there are some signs of demand returning to the market and we would expect an improved position in 2024 as consumer confidence begins to recover and mortgage rates start to fall."

Mr Wood also shared his thoughts on the upcoming year. He said: "With a general election looming, we may also see new home-buyer incentives that influence build volumes. In the mid- to long-term, the industry would welcome measures that restore consumer confidence and encourage market growth."

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson