New build homes in London bounce back

New homes in London recorded a 51 per cent year-on-year increase according to the National House Building Council’s, NHBC, registration figures for the first quarter of 2021.

Wales saw an 84 per cent rise followed by 65 per cent for the East Midlands and 52 per cent for the West Midlands. Northern Ireland experienced an eight per cent decrease and Scotland a six per cent drop.

Overall, the volume of new homes registered was up by a quarter to 45,991 compared to 36,665 for the same period in 2021. NHBC chief executive, Steve Wood, said: “We have seen a strong start to the year reflecting a reasonably buoyant new build market and strong forward sales.”

New home registration rose for every type of house with detached homes at 16,090 - a 20-year high as housebuilders responded to demand for extra space as many people continue to work from home.

Brokers Hank Zarihs Associates said demand for construction loans among the SME sector was strong with property development finance lenders still offering competitive rates.

Private sector registrations grew by nearly a third to 31 per cent at 35,134 as builders responded to high demand for new homes. There were also gains in the rental sector, up ten per cent to 10,857, driven in part by the growth in ‘build to rent’.

However, new home completions saw a slight decrease of four per cent to 31,874 with some disruption caused by materials’ shortages and supply chain challenges.

Steve added, “material and labour supply shortages continue to be a challenge, but this is now being managed by housebuilders as ‘the new normal’.

“Inflationary pressures and the strain on household budgets may yet impact market activity, with this likely to be dampened by continued strong demand in both private sale and rental sectors.”

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