New home registrations drop as builders hit by rising costs and red tape

By the Editorial Team · Monday, October 26, 2026

New home registrations in the UK fell by 13 percent in the third quarter, with most regions seeing declines and only Yorkshire and Humber plus the West Midlands experiencing growth. This drop complicates the government’s goal of building 1.5 million homes in five years, as rising costs, taxes, and regulatory challenges continue to hinder housing supply.

The number of new homes registered in the UK declined across most regions in the third quarter, highlighting the challenges facing the government in meeting its housing supply targets. According to data from the National House Building Council (NHBC), just over 26,000 new homes were registered during this period, representing a 13 percent decrease compared to the same quarter last year.

The decline was especially pronounced in the southeast of England, where registrations fell by 32 percent. Of the 12 regions analyzed, 10 experienced a drop in new home registrations. The exceptions were Yorkshire and Humber, which saw a 27 percent increase, and the West Midlands, where registrations rose by 10 percent. In London, registrations remained roughly steady compared to the previous year but were still just over one-fifth of their pre-pandemic level, with 1,223 homes registered in the third quarter.

The figures underscore the difficulties faced by the Labour government in achieving its target of building 1.5 million new homes over the five-year parliamentary term. Angela Rayner, the housing secretary, acknowledged last month that there was only a "slim chance" of reaching this goal.

Housebuilders have cited several factors contributing to the decline, including rising construction costs, increased taxes, and regulatory hurdles. Higher mortgage interest rates have also weakened demand amid a housing market where prices have largely stagnated. Jennie Daly, chief executive of Taylor Wimpey, one of the UK's largest housebuilders, recently stated that her company has no plans to expand building activity in London due to the economic risks associated with such developments.

Daniel Pearce, NHBC’s chief strategy officer, described the government’s recently announced Your First Home scheme as a positive but partial response. The initiative, launched by Andy Burnham, offers first-time buyers a 20 percent equity loan to assist in purchasing a new-build home, with an initial interest-free period and a minimum deposit of 2.5 percent. Pearce emphasized that addressing the housing shortage requires a multi-faceted approach, including actions to improve both affordability for buyers and conditions for developers. He highlighted the need to consider factors such as delivery costs, planning and regulatory constraints, and investment barriers to foster sustainable growth in the housing sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.