Detached home registrations high

Market buoyant despite £24-a-day increase in average house price for first-time buyers

The number of new detached homes being registered increased to the highest level in nearly 20 years in the first quarter of this year, according to an industry body.

Some 16,090 registrations for detached homes were recorded in the first quarter of 2022 as housebuilders continued to respond to buyers looking for extra space to suit working from home, the National House Building Council (NHBC) said.

The figure is the highest since the second quarter of 2002 when 16,828 detached houses were registered.

Overall, the number of new homes being registered across the UK jumped by a quarter (25%) in the first three months of this year compared with a year earlier.

Homes are registered with the NHBC before being built so its figures are an indicator of the housing stock in the pipeline. The body has a 70% to 80% share of the UK warranty market.

Some 45,991 new homes were registered to be built in the first quarter of 2022, the NHBC said.

It said private sector registrations were a key driver of growth, with gains also being made in the number of properties being built for the rental sector.

The number of new home completions fell by 4% compared with the first quarter of 2021, with some disruption caused by materials shortages and supply chain challenges, the NHBC said.

NHBC chief executive Steve Wood said: “We have seen a strong start to the year with a 25% uplift in new home registrations in the quarter, reflecting a reasonably buoyant new-build market and strong forward sales.

“Material and labour supply shortages continue to be a challenge, but this is now being managed by housebuilders as ‘the new normal’.

“Inflationary pressures and the strain on household budgets may yet impact market activity, with this likely to be dampened by continued strong demand in both private sale and rental sectors.”

This encouraging news comes despite the fact that house prices for first-time buyers have been increasing by £24 per day on average, according to analysis.

The average first-time buyer faced paying £223,751 for a property in 2021.

Someone getting on the property ladder typically needed to find £43,623 more than they would have in 2016, Direct Line Home Insurance said.

The North West of England has seen the greatest percentage increase in first-time buyer prices, rising by 35% (£43,812) over five years to 2021.

London is the most expensive first-time buyer market, with average prices reaching £440,590 last year, according to the research.

A typical first-time buyer property is now worth roughly seven times the average salary of someone aged in their 30s, compared with a multiple of six times in 2016, Direct Line found.

It used Office for National Statistics (ONS) figures in its calculations.

Dan Simson, head of Direct Line Home Insurance, said: “The rate at which (firsttime buyer) prices have been increasing is frankly frightening.”

Here are average house prices for first-time buyers in 2016, followed by 2021, and the cash and percentage change, according to Direct Line:

– North West, £125,443, £169,256, £43,812, 35%

– Wales, £126,901, £170,246, £43,345, 34%

– West Midlands, £147,764, £192,979, £45,215, 31%

– Yorkshire and the Humber, £129,152, £168,506, £39,354, 30%

– South West, £193,408, £245,336, £51,928, 27%

– Scotland, £113,520, £139,159, £25,639, 23%

– East of England, £224,061, £268,568, £44,507, 20%

– North East, £109,489, £130,956, £21,467, 20%

– South East, £245,557, £286,716, £41,159, 17%

– London, £410,266, £440,590, £30,323, 7%