Increase Recorded In New Home Registrations

The number of new home registrations recorded in the UK hit its second highest level in a decade during the 2017/18 financial year, new figures have shown.

Data from the National House Building Council (NHBC) showed that there were 154,698 new homes registered to be built in the 12 months from April 2017 to the end of March 2018, just two per cent lower than the figure recorded in 2016/17.

In fact, had it not been for the bad weather the UK was hit by in the first three months of 2018, this figure could have been higher. In the first three quarters of the 2017/18 financial year, registrations were ahead of those recorded in 2016/17. It was only in the early part of 2018 that they slowed down.

According to the NHBC, there are anecdotal reports from some builders that they lost up to 30 days on site as a result of the snowy and icy weather in the early part of this year.

As a result, new home registrations for this three-month period stood at 36,637 – down 14 per cent on the 42,405 recorded a year earlier.

Steve Wood, chief executive at the organisation, commented: “Business confidence in both the private and affordable sectors remains high with clear routes to continued growth in 2018, and NHBC will continue to help support house builders to build the high-quality new homes that people across the UK need.”

There were big increases in house building in some regions of the UK, most notably the north west, which posted a 21 per cent year-on-year increase. The east Midlands and Wales also saw new home registrations climb by 12 per cent and 11 per cent respectively.

In London, however, house registrations were down considerably, falling from 19,177 in 2016/17 to 14,792 in 2017/18.

What these figures don’t show, however, is what type of homes are being constructed. For some, self-building is the route they want to take but if you don’t have the money available upfront financing this kind of project can be difficult.

One thing that could make it a little easier in future is the launch of a self-build mortgage by Ipswich Building Society.

The organisation has removed the three per cent early repayment charge, allowing those who receive one of these loans to overpay by up to 50 per cent without being subject to any penalties.

Self-building gives you much greater choice not only over the design of your property, but also over the materials and construction methods used. Timber frame houses can be especially appealing to self builders because of the speed with which they can be erected once the components are delivered to the site.

Richard Norrington, chief executive of Ipswich Building Society, explained that his organisation wanted to offer a product to what he described as a “typically under-served element of the mortgage market” that would cater to the different needs these kinds of borrowers have.

YOU MAY ALSO BE INTERESTED IN