New Home Registrations Fall Again as Developers Slow Building Activity

UK new home registrations fell by 4% in Q2 2026 to 29,162 homes due to high interest rates, costs, and market pressures, according to the National House Building Council. Private sector numbers dropped 5%, while rental and affordable sectors remained flat. [1, 2, 3]

Key Data Points

• Total drop: 29,162 homes registered in Q2 2026, down from 30,259 in Q2 2025.
• Private sector: Down 5% to 19,045 homes.
• Rental and affordable: Unchanged at 10,117 homes. [1]

Regional Changes

• Biggest drops: South West (-42%), East Midlands (-36%), and Wales (-34%).
• Biggest rises: London (+170%), North West (+37%), and East of England (+15%).

London bucked the trend with a +170% rise, though NHBC cautioned this may reflect volatile large-scale schemes rather than sustained recovery. Other risers included the North West (+37%), East of England (+15%), and South East (+12%). 

Why This Matters: Daniel Pearce, Chief Strategy Officer at NHBC, explained: "Elevated interest rates, geopolitical volatility and rising costs combined with affordability pressures impacting consumer demand, meant that many house builders slowed their build programmes in the second quarter." 

Industry View: Pearce welcomed new Prime Minister Andy Burnham's commitment to "the most ambitious council house-building programme since the post-war era," calling it "an important lever in boosting overall supply." However, he stressed the need for "greater clarity on the mechanisms and funding."