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The North West: Only UK Region to See Increase in New Homes in Q1 2016

The number of homes in England earmarked for construction fell in Q1 2016 – with the exception of the North West, according to the latest industry figures.

Property Prices 2015

The number of homes in England earmarked for construction fell in Q1 2016 – with the exception of the North West, according to the latest industry figures.

In the first three months of 2016, the National House Building Council (NHBC), which represents 80% of the new-build market, recorded a total of 36,566 homes registered, or number of homes that builders have applied to be covered by NHBC’s warranty – an important indicator of house building activity.


The total number of homes registered in the private sector was 28,398 for Q1, compared to the 30,560 homes registered in the first quarter of 2015, denoting a 7% decrease year-on-year.


The decline in the number of homes registered to the NHBC during Q1 of this year can be seen across all regions in the UK apart from the North West, which witnessed a 17% increase with 3,198 new homes planned to enter the market in the coming months.


With the steep surge in house prices seen in recent months, driven by the increase in Stamp Duty Land Tax for second homes and investment purchases, the North has attracted attention from first-time buyers as well as investors looking for properties with minimal duty charges whilst offering generous rental returns.


The increased demand for properties at more affordable prices and higher rental returns could explain the recent surge in house building activity in the North West, with more homes being registered to attenuate the demand.


Responding to the figures, the NHBC reiterated that registrations for the 2015/16 financial year, which ended in March, totalled 152,329, remaining in line with the 152,262 registrations seen in the previous financial year.


The NHBC also recorded a 10% increase in home completions for 2015/16 compared to 2014/15, with 137,396 homes completed in the year to March 2016.


This increase reflects the solid growth seen in registrations witnessed in recent years, up by 80% from 2008’s financial crisis, resulting in new homes completed over the first months of 2016.