The quarterly rate of house price growth is at its highest level for 14 months, a consequence of the increase in housing sales nationwide during the last quarter compared to the previous 12 months. This is likely a result of house purchases being delayed earlier in the year at the time of the General Election.
During the July to September period, (Q3 2017) 37,936 new homes were registered, a 6% increase on the same period last year. Of these 29,083 were for the private sector which is a 9% increase on Q3 2016. However, in the affordable sector, registrations dropped 5% to 8,853 new homes.
The NHBC said that seven out of 12 UK regions saw registration growth during Q3 2017 against Q3 2016. Among those with the most significant growth were Scotland, which experienced a 50% rise to 3,056 new homes registered, the East Midlands at 42% growth to 3,575, and the North East, seeing registrations improve 34% to 2,078. However Greater London’s registrations dropped from 3,860 in Q3 2016 to 2,494 during Q3 2017.
NHBC’s CEO, Steve Wood, said:
“We have seen encouraging growth in terms of the number of new homes being registered over the last three months, across many parts of the country.
With demand for high quality new homes as strong as ever, this is positive news for the industry and prospective homebuyers, particularly in light of the current political and economic uncertainties.”
The current need for housebuilding comes from the increase in population we have experienced over the past ten years. UK population growth has averaged 0.8% per annum during this time, which is an increase of 4.8m people since 2006, bringing the total population to 65.6m. For the next decade the pace of growth is forecast to slow to 0.5% pace; however, this is still a further 3.6m people by 2026 which will bring the total population to 69.2m which is another reason we need more housebuilding and infrastructure now and in the future.