Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

New Home Registrations Drop 4% Amid Economic Pressures on UK Housebuilders

UK new home registrations fell by 4% in the second quarter of 2026, as housebuilders faced higher costs, economic uncertainty, and weaker demand. Figures from the National House Building Council (NHBC) show 29,162 new homes were registered between April and June, down from 30,259 in the same period last year.

Private sector registrations declined by 5% to 19,045, compared with 20,097 a year earlier. Registrations in the rental and affordable housing sector remained almost unchanged at 10,117, compared with 10,162 in the second quarter of 2025.

NHBC chief strategy officer Daniel Pearce said that higher interest rates, rising costs, and geopolitical uncertainty had made conditions more difficult for housebuilders. He noted that affordability pressures had reduced demand from buyers, leading many developers to slow their building programmes.

Pearce welcomed the prime minister's commitment to deliver what has been described as the most ambitious council house-building programme since the post-war era, but said the industry wanted more detail about how the programme would be funded and delivered. He also said that faster planning decisions, fewer regulatory barriers, and measures to improve affordability for buyers would help increase housing supply.

Across the UK, six of the 12 regions recorded fewer registrations than a year earlier. The largest falls were in the South West (down 42%), East Midlands (down 36%), and Wales (down 34%). London recorded the biggest increase, with registrations up 170% compared with the second quarter of 2025. The North West (up 37%), East of England (up 15%), South East (up 12%), West Midlands (up 7%), and Scotland (up 6%) also saw growth.

Pearce said London’s figures should be treated with caution, as registrations in the capital often vary due to large developments being registered in batches rather than spread evenly through the year. He said the next two quarters of NHBC data would give a better indication of whether the increase in London is likely to continue.