House-building volumes need to double to meet 1.5 million pledge

House-building volumes will need to double in order to meet the Government’s 1.5 million pledge, according to the National House Building Council (NHBC).

Just 29,281 new homes were registered to be built in the second quarter of 2024, less than half the amount you’d need to reach Labour’s target of construction 1.5 million new homes.

At that rate, only 600,000 homes would be built over the course of the five-year parliament.

This is a reduction from 37,861 in Q2 2023, figures released by the NHBC.

Steve Wood, chief executive at NHBC, said:

“We welcome the new government’s policy to deliver 1.5 million homes over the next five years, even if our new build registration numbers show there is a mountain to climb.

“Scaling up will take time but we can be encouraged by the government’s announcements on new home-buyer incentives, changes to the planning system and investment in infrastructure, including power grids, water supply and roads.

“In addition, more must be done to close the national skills gap.

“With an ageing workforce, a lack of skilled workers could seriously slow down Labour’s plans.

“Working closely with builders, contractors and government agencies, NHBC is rolling out a national network of training hubs to help upskill the next generation.

“We appeal to a diverse range of apprentices, training people from all backgrounds.”

Across the UK, nine out of 12 regions saw a rise in registrations in Q2 2024 compared to Q1 2024, with the biggest increases in Wales (+131%), East Midlands (+98%) and North-West and Merseyside (+61%).

However, they were down in Northern Ireland and Isle of Man (-15%), Yorkshire and Humberside (-10%) and London (-10%) – suggesting these regions need to pick up the pace.

Wood added:

“Meeting the government’s housing goals will require significant changes, commitment and investment across industry.

“We will be seeking to ensure new homes are built to the quality owners and occupiers should expect, and that this is maintained during any period of growth.

“This will pay dividends in the long-term, for the industry, for local communities and for home occupiers.”

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