A complete of 20,680 new houses have been registered with the NHBC in July, August and September 2023, in comparison with 44,153 in Q3 2022.

New house completions in Q3 2023 have been down 15% on Q3 2022, in accordance with NHBC information.

NHBC chief government Steve Wooden mentioned: “With stubbornly excessive rates of interest, persistent inflationary pressures, an ineffective planning system and an more and more complicated regulatory surroundings, it’s no shock fewer houses are being constructed.

“Regardless of a big decline in new house registrations within the quarter, the sector is basically sound, with builders centered on finishing current tasks.

“Whereas client confidence has taken a knock over excessive mortgage charges and the elevated value of dwelling, new house costs are typically holding up, partially due to incentivised gross sales.”

New bungalows have gotten more and more scarce. Solely 228 bungalows have been registered for NHBC warranties in Q3 2023, down 70% on the identical interval final yr and the bottom determine recorded by NHBC in its 80-year historical past. Semi-detached houses noticed the best variety of registrations by home kind, at 5,919 in Q3 2023 adopted by indifferent houses (5,735) and flats (5,393) respectively. 

Steve Wooden mentioned: “It’s too early to say the bungalow is extinct. What we are able to see is they’re actually on the critically endangered record with financial and land pressures in addition to modifications in client demand contributing to a decline of their development. Bungalows could be a dearer choice for each builders and patrons in comparison with two-storey houses.

“Historically seen as ideally suited retirement properties, the reducing availability of bungalows is resulting in new-build houses turning into extra fascinating for older individuals, with their trendy layouts and elevated power effectivity.”

Throughout the business, personal sector registrations have been hit hardest, down 57% on the identical interval final yr. In Q3 2022 personal sector registrations have been 31,334; in 2023, simply 13,429.

The rental and reasonably priced sector noticed a barely shallower decline with 7,251 registrations in Q3 2023, down 43% on the earlier yr’s 12,819.

“Whereas personal sector registrations have seen the most important knock within the quarter, we’re seeing a number of main home builders companion with housing associations and construct to lease suppliers, re-focusing elements of their output on the reasonably priced sector, Wooden mentioned. “This helps to deal with a number of the demand for reasonably priced houses, offering extra choices within the rental sector.”

Throughout the UK, all areas noticed a fall in new home registrations, other than Northern Eire which bucked the development with a 52% uplift in registrations (1,258 in Q3 2023 in comparison with 826 in Q3 2022).

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