Construction pipeline weakens amid affordability squeeze
The number of new homes registered to be built has fallen in the first quarter of 2026, down 6% on the same period last year, according to figures from the National House Building Council (NHBC).
Its research shows that 26,959 new homes were registered to be built in the period, down from 28,715 in Q1 2025.
Private sector registrations fell 7% to 18,072, compared to 19,439 in Q1 2025. Meanwhile, the rental and affordable sector saw a 4% decline, with 8,887 new homes registered down from 9,276 in Q1 2025.
Daniel Pearce, corporate strategy director at NHBC, said: “Our latest figures indicate house builders are taking a cautious approach to registering new plots as fragile consumer confidence, affordability challenges and global economic uncertainty continue to impact demand.”
Action needed
He said action needs to be taken urgently to kickstart the market. “It’s a perfect storm – the market is subdued, mortgage rates are rising and cost pressures on households are in full effect, exacerbated by geopolitics and recent conflicts. Resolving affordability challenges for homebuyers remains the key to unlocking demand.
“The market is crying out for some targeted stimulus, such as a new buyer incentive, to help those who need it most get on the housing ladder.”
Pearce said there was currently little incentive for developers to accelerate building, but that needed to change. “Easing certain regulatory requirements, at a time when other costs are rising beyond their control, is a lever that could be pulled to support home builders, particularly SMEs. Accelerating planning reforms is also crucial to help house builders deliver high-quality new homes at volume. The impact of the recent planning changes has yet to be felt.”
Across the UK, 8 out of 12 regions saw a decline in registrations in Q1 2026 compared to Q1 2025, with the biggest decreases in Northern Ireland (-44%), London (-37%) and Wales (-21%). The North West saw the greatest rise (+27%), with the North East (+15%), Yorkshire and The Humber (+7%) and West Midlands (+2%) also experiencing an uplift.
All house types except for detached homes saw a fall, although the number of detached plots registered was only 62 higher than in the same period in 2025.
Rising costs threaten Q2
Looking ahead to Q2, Pearce said the economic fallout from the Middle East conflict will impact new home registrations as developers face rising costs.
“Looking at options to support buyer demand, particularly for first-time buyers and those who need it most, is crucial, whilst reducing controllable costs to home builders, such as regulatory requirements and planning, can stimulate supply. Both demand and supply levers are needed if we are to get close to 1.5 million new homes.”
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