2020
The National House-Building Council (NHBC) recently reported a 40% decrease in new home registrations in the first quarter of 2020 compared to the same period last year. This is a significant drop and has major implications for the UK housing market.
The NHBC is the leading warranty and insurance provider for new homes in the UK and its report provides an important insight into the current state of the housing market. The decrease in registrations is likely due to the economic uncertainty caused by the coronavirus pandemic, as well as the disruption to construction projects due to social distancing measures.
The decrease in new home registrations is likely to have a knock-on effect on the wider economy. The construction industry is a major employer in the UK and the decrease in activity could lead to job losses and reduced economic growth. Furthermore, the decrease in new home registrations could lead to a decrease in house prices, which could have a negative impact on the housing market.
The UK government has taken steps to mitigate the impact of the pandemic on the housing market, including introducing a stamp duty holiday and providing financial support for businesses in the construction sector. However, it remains to be seen if these measures will be enough to offset the decrease in new home registrations.
It is clear that the decrease in new home registrations reported by the NHBC is a cause for concern and could have serious implications for the UK housing market. It is therefore essential that the government takes further action to support the construction sector and ensure that new home registrations remain at a healthy level.