Private housing continues to drive growth

The number of new homes registered in the UK over the second quarter of the year rose 3%, with growth entirely driven by the private sector.

The latest figures from the NHBC showed a total of 36,858 homes, across the public and private sectors, were registered in Q2 2014, compared with 35,683 over the same period last year - a rise of 3%.

But the figures reveal the growth was entirely driven by the private sector - which grew 9% compared to same period last year (27,527 in Q2 2014; 25,209 in Q2 2013).

The public sector reported a 11% drop in registrations (9,331 Q2 2014; 10,474 in Q2 2013).

The NHBC said the drop in public sector registrations coincided with first phase of the government’s Affordable Housing Programme coming to an end in 2015.

The figures show that June experienced a 14% increase in registrations, compared to the same month last year (11,726 versus 10,285 in 2013).

Across the UK for the last quarter, the South-east experienced a 48% increase compared to the same period last year (6,434 Q2 2014; 4,355 Q2 2013) with the East Midlands up 38% for the quarter (3,708 Q2 2014; 2,693 Q2 2013).

NHBC chief executive Mike Quinton said: “It is encouraging to see that housebuilding levels have continued to grow in 2014 - following the substantial increase in volumes recorded last year.

“However, we have been clear that the UK still has an undersupply of new homes so we must continue to work hard to meet the growing housing needs of the population.

“Our figures also show that there has been a noticeable growth in the private sector. As expected, this has coincided with a drop in affordable housing registrations.

“This decrease in public sector registrations can be attributed, in part, to the first phase of the government’s Affordable Housing Programme coming to an end.

“We anticipate that the public sector will pick up again as funding is fully allocated for the next phase from 2015 to 2018.”