New data released by NHBC reveals that new home completions “have returned to pre-pandemic levels as house builders demonstrate their commitment to meet the high demand for new homes”.
A total of 40,289 were completed in Q2 2022, up 16% on Q2 2021. The quarter also saw an increase in the number of new home registrations – the process by which house builders register plots they intend to build with NHBC – to 66,855, up by 45%. This uplift, ays NHBC, is in part due to builders seeking to minimise the cost impact of energy efficiency regulations introduced in June.
The figures from NHBC, are widely recognised as a leading indicator of house-building activity, show that 11 out of 12 UK regions saw growth in the number of new home completions. The largest increases were in the North East (1,781 in Q2 2022 vs 1,284 in Q2 2021) and East Midlands (4,117 in Q2 2022 vs 3,071 in Q2 2021) whilst only Wales saw a slight decrease (1,183 in Q2 2022 vs 1,189 in Q2 2021).
Growth in new home completions was shown to be driven by the private sector with 29,963 in Q2 2022, up 23% on Q2 2021. New home completions in the affordable and build-to-rent sector were level with the same period last year at 10,326.
Steve Wood, NHBC Chief Executive, said: “Our latest figures demonstrate that output from the new homes market has made a solid return to pre-pandemic levels. At this stage we are not seeing evidence that the cost-of-living crisis or risks of recession are affecting consumer demand, whilst registration levels reinforce continued confidence within the sector.”
