New home completions bounce back to pre-pandemic levels
New home completions have returned to pre-pandemic levels, according to the NHBC, an independent provider of warranty and insurance for new homes.
The organisation says its research highlights that overall a total of 40,289 were completed in the second quarter of 2022, an increase of 16 per cent compared to the same time last year.
The quarter also saw an increase in the number of new home registrations – the process by which house builders register plots they intend to build with NHBC – to 66,855, up by 45 per cent.
This uplift is in part due to builders seeking to minimise the cost impact of energy efficiency regulations introduced in June.
According to the NHBC, 11 out of 12 UK regions saw growth in the number of new home completions.
The largest increases were in the North East (1,781 in Q2 2022 compared to 1,284 in Q2 2021) and East Midlands (4,117 in Q2 2022 compared to 3,071 in Q2 2021).
Only Wales saw a slight decrease (1,183 in Q2 2022 vs 1,189 in Q2 2021).
The research also revealed new home completions in the affordable and build-to-rent sector were level with the same period last year at 10,326.
The overall growth in new home completions was driven by the private sector, with 29,963 in Q2 2022, up 23 per cent on the same time last year.
NHBC chief executive Steve Wood says the results of the research are a cause for optimism and show confidence within the house building industry.
“Our latest figures demonstrate that output from the new homes market has made a solid return to pre-pandemic levels,” he states.
“At this stage we are not seeing evidence that the cost-of-living crisis or risks of recession are affecting consumer demand, while registration levels reinforce continued confidence within the sector.”