The number of new homes being registered to be built in the first quarter of this year fell by 40% compared with the same period a year earlier, according to an industry body.
The National House Building Council (NHBC) said 27,673 new homes were registered to be built in the first quarter of 2023.
The NHBC has a 70% to 80% share of the UK warranty market.
Its figures indicate the stock of new properties in the pipeline as homes are registered with the NHBC before being built.
The data indicates house builders are taking stock, planning their output carefully and matching it to expected demand— Steve Wood, NHBC chief executive
The decline in new homes being completed was less steep, falling by 7% compared with the first quarter of 2022, as builders focused on finishing existing projects, the NHBC said.
NHBC chief executive Steve Wood said: “Emerging from the economic shocks of 2022 and getting to grips with a demanding regulatory environment, the data indicates house builders are taking stock, planning their output carefully and matching it to expected demand.
“While output may have slowed, building at a more controlled rate helps drive quality, which ultimately leads to better outcomes for the consumer.
“Buying a home is the biggest financial commitment many of us will ever make, so it is no surprise that prospective buyers are waiting to see if interest rates will fall in the coming months before making purchase decisions.”
The NHBC also said the number of detached houses being built halved in the first quarter of 2023 compared with the first quarter of 2022 (8,041 versus 16,089), with terraced homes and apartments representing a larger part of the market than the same period last year.
Mr Wood said this suggests that some builders are focusing on the affordable end of the market.
He added: “Emerging from the pandemic, we saw record numbers of registrations for detached homes but now with pressures on family finances it is no surprise that the present focus has shifted towards affordable homes in both the private and rental sectors.”
The NHBC previously said that last year was the strongest for new home registrations since 2007.
Across the UK, 191,801 new registrations were recorded by the NHBC in 2022, marking the highest annual total since 198,467 in 2007.
