...By Judah Olanisebee for TDPel Media.
The National House Building Council (NHBC) has reported a 40% drop in the number of new homes registered to be built in Q1 2023 compared to the same period a year ago.
However, the decline in the number of new homes being completed was less steep, with a fall of 7% from Q1 2022.
The NHBC said this indicates house builders are taking stock, planning their output carefully, and matching it to expected demand.
The number of detached homes being built also halved in the first quarter of 2023 compared with the same period last year.
This suggests that some builders are focusing on the affordable end of the market, according to NHBC Chief Executive Steve Wood.
Steve Wood said, “Emerging from the economic shocks of 2022 and getting to grips with a demanding regulatory environment, the data indicates house builders are taking stock, planning their output carefully and matching it to expected demand.
While output may have slowed, building at a more controlled rate helps drive quality, which ultimately leads to better outcomes for the consumer.”
He added that the current focus has shifted towards affordable homes in both the private and rental sectors.
NHBC has a 70% to 80% share of the UK warranty market.
Its figures indicate the stock of new properties in the pipeline as homes are registered with the NHBC before being built.
The decline in new homes being completed was less steep, falling by 7% compared with the first quarter of 2022, as builders focused on finishing existing projects, the NHBC said.
The record number of registrations for detached homes seen during the pandemic is now shifting towards affordable homes, reflecting the pressures on family finances.
The NHBC reported last year as the strongest for new home registrations since 2007, with 191,801 new registrations recorded across the UK.