Sector - Housing
Pandemic Sees Decline in New Home Registrations
Due to the ongoing COIVD-19 pandemic, the National House Building Council (NHBC) has reported that the number of new homes registered to be built in the UK fell by 23% in the UK in 2020.
However, productivity moved close to pre-pandemic levels in the final quarter of 2020 with new home registrations down just 2% on the same period in 2019.
The NHBC registered a total of 123,151 new homes in 2020, compared to 160,319 in 2019 with the largest falls being seen in the second quarter of 2020 when the UK went into its initial lockdown and halted work on sites across the country.
Housebuilding activity rebounded quickly once builders and building sites established COVID secure working practices in the summer, with a total of 39,749 new homes being registered in the final quarter of 2020, 34% up on the third quarter.
The numbers of new home registrations fell in every UK region in 2020, with the South East of England (-28 per cent), Scotland (-28 per cent) and Northern Ireland (-38 per cent) seeing the most significant falls, whilst London was down 21 per cent. The data indicates that many UK cities saw greater falls in new home registrations than their wider regions with, for example, Manchester dropping 42 per cent in 2020 versus 2019, compared with just 27 per cent across the whole of the North West. London and Glasgow were the only major cities to buck this trend.
New home registrations in the private sector fell by 26 per cent to 81,067, with the affordable and build to rent sector seeing a more limited fall of 16 per cent to 42,084, compared to the previous year. This is encouraging, reflecting the continued long-term attractiveness of UK housing as an asset class for inward investment.
Commenting on the 2020 new home registration statistics, NHBC Chief Executive Steve Wood said: “Against the backdrop of the COVID-19 pandemic, the new build housing market has held up very well, with housebuilders showing resilience and adaptability throughout 2020.
“Last Spring saw a sharp shock to the housing market and it is heartening that by the close of 2020, productivity levels had moved very close to those seen in late 2019.
“Confidence in the housing market, particularly for newly-built homes, remains strong with many larger housebuilders forward sold into the summer despite the continued impact of the pandemic and prevailing economic uncertainties.”
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