Current house building volumes must double to meet Labour’s 1.5m new homes pledge

Figures released by the National House Building Council (NHBC), the UK’s largest provider of new home warranties and insurance, show 29,281 new homes were registered to be built in Q2 2024, down 23% on Q2 2023 (37,861). 33,847 new homes were completed in the same period, 6% down on Q2 2023 (36,145).

Quarter-on-quarter, NHBC’s new home registrations and completions are tracking positively, up 34% and 29% respectively. Whilst this uplift is encouraging, the present quarterly rate will need to more than double to deliver Labour’s pledge of 1.5 million homes over the next five years.

Steve Wood, CEO at NHBC comments: “We welcome the new Government’s policy to deliver 1.5 million homes over the next five years, even if our new build registration numbers show there is a mountain to climb.

“Scaling up will take time but we can be encouraged by the Government’s announcements on new home-buyer incentives, changes to the planning system and investment in infrastructure, including power grids, water supply and roads.

“In addition, more must be done to close the national skills gap. With an ageing workforce, a lack of skilled workers could seriously slow down Labour’s plans. Working closely with builders, contractors and Government agencies, NHBC is rolling out a national network of training hubs to help upskill the next generation. We appeal to a diverse range of apprentices, training people from all backgrounds.”

Across the UK, 9 out of 12 regions saw a rise in registrations in Q2 2024 compared to Q1 2024, with the biggest increases in Wales (+131%), East Midlands (+98%) and North West and Merseyside (+61%). Registrations were down in Northern Ireland and Isle of Man (-15%), Yorkshire and Humberside (-10%) and London (-10%).

There were 20,502 private sector registrations in Q2 2024, up 55% on Q1 2024 (13,211). Rental and affordable sector figures were more stable, with 8,779 registrations in Q2 2024, 2% up on Q1 2024 (8,640).

Quarter-on-quarter, there was a rise in registrations across all house types, with a growth of 5% in apartments, 13% in terraced properties, 40% in semi-detached homes, 46% in bungalows and 64% in detached homes, compared to Q1 2024. Detached homes were the most registered house type in Q2 2024 (9,871).

Steve Wood adds: “Meeting the Government’s housing goals will require significant changes, commitment and investment across industry. At NHBC we will be seeking to ensure new homes are built to the quality owners and occupiers should expect, and that this is maintained during any period of growth. This will pay dividends in the long-term, for the industry, for local communities and for home occupiers.”