Latest sector statistics show growth in both new home registrations and prices.
More than 14,500 new homes were registered in October, according to ne wfigures from the NHBC. This represents an 8% increase on the same month in 2017. Both the private sector (up 7%) and the affordable sector (up 12%) recorded strong increases.
The announcements follow strong numbers seen in recent months. For the rolling quarter, between August and October, 42,307 new homes were registered in 2018 compared to 39,625 in 2017 – an increase of 7%.
Overall, the NHBC report reveals that there is growth in eight out of 12 UK regions, including Yorkshire & Humberside, London and the South West.
NHBC is a leading warranty and insurance provider for new homes in the UK and its registration statistics are a lead indicator for the new homes market.
Commenting on the October figures, NHBC Chief Executive Steve Wood said: “Despite a slow start to the year because of the extreme weather conditions, it is very pleasing to report that the upturn in registrations we saw over the summer is continuing. Although there is some caution as we all wait to see what happens on Brexit, we are hopeful that this strong end to the year will be maintained, as the industry strives to build more new, high-quality homes that the UK needs.”
The price for which new homes are selling is also continuing to rise. Analysis by LSL Land & New Homes – which looks at national property sales data – reports an increase of 3.7% in the average price for which a new-build house is sold.
However, it reports the rate of rise is slowing. In the same period last year a rise of 9.5% was recorded.
The organisation’s analysis notes the latest Halifax data, which has recorded a 1.5% year-on-year growth in house prices on the same quarter a year since, and Nationwide data which recorded a 1.6% year-on-year increase. It also cites The Hometrack UK Cities House Price Index, which reports an average year-on-year growth rate of 3.4% amongst the UK’s cities.