New homes completed with NHBC warranties were down 12% in 2023 to 133,213 (2022: 151,308) but 2024 is likely to see steeper fall as starts dried up.
Nationally NHBC provides warranties on approximately 70-80% of new homes built in the UK. New homes are registered at the start of the build process. In 2023 there were just 105,449 new homes registered with NHBC, 44% down on 2022’s 189,009.
Of these, 64,877 were registered in the private sector, 53% down on 2022 (136,805), and 40,572 were registered in the rental & affordable sector, 22% down on 2022 (52,204).
Of the NHBC completions in 2023, the private sector accounted for 87,564, down 20% on 2022 (109,829), while 45,649 were in the rental & affordable sector, up 10% on 2022 (41,479), reaching an all-time high in NHBC records.
The data also shows that the demise of the bungalow continues, with 1,466 registrations in 2023, 48% down on 2022.
NHBC chief executive Steve Wood said: “The backdrop of high interest rates, significant inflationary pressures and challenges with planning consents has supressed 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. With a general election looming, we may also see new home-buyer incentives that influence build volumes.”
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