The government's goal to deliver 1.5 million new homes during the current Parliament has faced another setback, as new figures reveal a second consecutive year of fewer development starts. Data from the National House Building Council (NHBC) indicates that 29,162 new homes were registered for construction in the second quarter of 2026. This represents a 4% decrease from the 30,259 registrations recorded in the same period last year.
Housebuilders are continuing to contend with rising costs and economic uncertainty, which Daniel Pearce, chief strategy officer at NHBC, attributed to "elevated interest rates, geopolitical volatility and rising costs combined with affordability pressures impacting consumer demand." These factors led many housebuilders to slow their build programmes in Q2 2026.
The decline in registrations follows recent comments from Housing Secretary Angela Rayner, who stated that meeting Labour’s housebuilding target would be "really difficult." While half of the 12 UK regions saw a decline in registrations, London experienced a significant rise of 170%. However, Mr Pearce cautioned that London's registration volumes can be more volatile due to the nature of large, high-density schemes.
New Prime Minister Andy Burnham's commitment to a post-war era council house-building programme was welcomed by Mr Pearce as an "important lever in boosting overall supply." He also suggested that accelerating planning reform, easing regulatory burdens, and improving affordability for prospective buyers would help boost housing supply and unlock demand.