Increase in new affordable homes fails to offset private sector decline

“Nonetheless, it is encouraging to see growth coming through in the affordable and rental sector.”

The number of new homes to be built for the affordable and rental sector in the UK continues to rise significantly, but these gains have failed to offset the decline in the private sector registrations.

According to the latest NHBC figures, 3,875 new homes were registered in the affordable and rental sector in August, a 17% increase (3,252 in 2018), while home registrations in the private sector fell 20% to 8,420 (10,460 in 2018).

The overall number of new homes registered to be built by builders and developers across the UK in the month was down 10% (12,295) compared to August 2018 (13,712).

For the rolling quarter, between June and August, 40,213 new homes were registered compared to 42,329 in 2018 – a decrease of 5%.

Within this, there was an 8% fall in the private sector, partially offset by 4% growth in the affordable and rental sector.

Commenting on the latest figures, NHBC chief executive Steve Wood said: “The slowdown in overall registrations in August seems to be partly due to prevailing uncertainties in this pre-Brexit period.

“Nonetheless, it is encouraging to see growth coming through in the affordable and rental sector.”

NHBC is the leading warranty and insurance provider for new homes in the UK, and its registration statistics are often seen as alead indicator for the new homes market.

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