Latest figures show that new build home registrations were up 10% in the first quarter of 2021 compared to the same period in 2020.
The new data from NHBC, a new home warranty and insurance provider, shows the market is recovering. There was a slump in registrations in Q2 2020 as a result of lockdown restrictions, followed by a strong recovery in Q3 and Q4.
36,863 new homes were registered with NHBC in the first quarter of 2021 compared to 33,388 in the same period last year. 33,074 house completions were also recorded, a 4% uplift on Q1 2020 (31,652).
Private sector registrations were up 10% compared to Q1 2020, from 24,615 to 26,985, whilst the rental sector saw registrations up 13% to 9,878 (8,773 in Q1 2020).
NHBC said the desire for longer-term working from home has been accelerated by the pandemic, with increased registrations for detached and semi-detached houses, up 18% and 30% respectively compared to Q1 2020, whilst 21% fewer apartments were registered.
Nine out of 12 UK regions have seen increased registrations in Q1 compared to last year, with the highest uplifts in the North East (+61%), Eastern (+42%) and South West (+31%). London (-29%), West Midlands (-21%) and Wales (-14%) were the fallers.
Steve Wood, NHBC’s chief executive, said: “It is encouraging to see that new home registrations at the start of 2021 have overtaken registrations from the same time last year. Demand for detached and semi-detached houses has increased significantly during the pandemic, which has accelerated the longer-term trend to more home-based working.
“Increased new home registrations reflect growing confidence amongst builders, most of whom are forward sold through the summer. Allied to continued investment in Build to Rent, this suggests a strong outlook for the new-build sector in the year ahead.”
John Doughty, financial services director, new build division, Just Mortgages, added: “It is encouraging to see the rise in both new build home registrations and completions and housebuilding has certainly been picking up since last June after the first lockdown was lifted. This reflects our mortgage activity in the new build space, which has been boosted by the stamp duty holiday, Help to Buy and people’s desire for more space.
“Interesting, more detached and semi-detached houses are now being built compared to flats which saw an annual fall in registrations of 21% in Q1 2021. Since the onset of the pandemic, we have seen a rise in mortgage enquiries for houses than for flats. More people want a larger property for home working purposes and an outside garden area for relaxation and exercise.”
