New home registrations rise - but London plummets
New homes across the UK are up - but London has seen a massive fall in starts.
6 August 2025
The number of new homes registered in the UK rose slightly in the second quarter of 2025, though the increase masked sharp regional differences, with London seeing a steep 59% year-on-year decline, according to figures released by the National House Building Council (NHBC) on 30 July.
A total of 30,405 new homes were registered with the NHBC in Q2 2025, a 4% increase compared to the same quarter in 2024. Registrations in the private sector reached 20,924 - up 6% - while the rental and affordable housing sector saw a 1% rise, totalling 9,481 homes.
NHBC Chief Executive Steve Wood described the growth as a sign of improving confidence among developers, particularly for low-rise housing. He also pointed to improving conditions, including easing mortgage rates and fewer constraints in planning and land availability, as reasons for cautious optimism. “While some areas of the market remain subdued, we remain optimistic about the longer-term,” he said.
However, London presented a stark contrast. The capital registered just 904 new homes in Q2 2025, compared to 2,191 a year earlier-a drop attributed to the continuing impact of the new building safety regime for high-rise buildings and lower activity from housing associations.
Across the UK, six of twelve regions recorded year-on-year increases in Q2 registrations. The strongest growth was in Yorkshire and Humberside (+96%), the South West (+75%), and Northern Ireland (+44%). Declines were reported in areas such as the North West (-16%), Eastern England (-12%), and the South East (-15%).
In terms of housing types, terraced house registrations rose the most, up 33% from 4,025 to 5,371. Detached homes increased 7% to 10,521, semi-detached homes were up 5% to 10,111, and bungalows grew 4% to 400. In contrast, apartment registrations dropped by 23%, down from 5,218 to 4,002.
NHBC also reported a 6% quarter-on-quarter rise in rental and affordable registrations, crediting the momentum to the UK government’s £39 billion Social and Affordable Homes programme announced earlier this year.
Total home completions for Q2 2025 stood at 32,434, which represents a 5% fall compared to the same period in 2024.
The NHBC figures, which cover more than 70% of new homes built in the UK, offer a key indicator of short-term trends in the housebuilding sector. While national registration numbers have edged upward, the severe drop in London’s figures highlights ongoing regional disparities and sector-specific challenges.
