New Build Housing Falls Year on Year But the Signs are More Positive for 2024

• New homes completed in Q3 2023 were down 15% on the same period in 2022.
• New home registrations fell by 53% in the third quarter of 2023 compared to the same quarter in 2022.
• 20,680 new homes were registered in Q3 of 2023 compared to 44,153 in Q3 2022.
• Design development refining the plans.
• Economic factors including interest rates, inflationary pressure, a poor planning system and complex regulations all lead to fewer homes being built.
• In the whole year to December 2023, new build home starts were 16% down compared to the year to 31 December 2022, and completions were 11% down year on year.
• The estimated number of new build completions for 2023 was 231,100, a 9% decrease compared to 2022.

Source: Figures released by the National House Building Council (NHBC)

Positive Outlook for the Housing Market

• Housebuilder sales rates are picking up.
• The pace of build cost growth has slowed significantly.
• UK house prices are stabilising and mortgage rates are coming down.
• Interest rates are levelling off and build cost inflation has eased.
• Opportunities for developers to build now and sell in a few years into a market starved of stock.
• De-risking across large scale projects through block sales.
• Investors and operators in build-to-rent, student and seniors housing will be key.

Savills Residential Research also shows a positive increase over the coming 5 years in their Mainstream Capital Value forecast

Granite Building Warranties are specialist independent brokers of building warranties for the construction industry and for a quote or further information, please contact Ed or Kelly on Tel: 01284 365345 or email ed@granitebw.co.uk / kelly@granitebw.co.uk