New home registrations fall by almost a quarter in Wales

The number of new homes registered for construction in Wales has fallen by almost a quarter, raising concerns about future housing supply.

Figures from the National House Building Council (NHBC) show 647 new homes were registered in Wales during the third quarter of 2026, down 24% on the same period last year.

The decline was steeper than the UK-wide fall of 13%, with only the South East of England and the combined Northern Ireland and Isle of Man category recording larger percentage drops, both at 32%.

The figures provide an indication of future housing supply, as developers register homes with the warranty and insurance provider before construction. They are not a count of completed homes and do not cover the entire market.

The NHBC has a share of more than 70% of the UK warranty and insurance market for new-build homes.

Across the UK, registrations fell from 30,279 in the third quarter of 2025 to 26,231 in the same period this year.

The rental and affordable housing sector recorded the sharpest decline, with registrations down 23% to 7,872. Private sector registrations fell by 8% to 18,359.

No equivalent breakdown for Wales was provided in the figures.

Daniel Pearce, chief strategy officer at the NHBC, said: “The housing industry is at a critical point.

“Demand remains fragile, affordability is stretched and our latest figures show that the pipeline of new homes is continuing to shrink.

“Without action to support demand and tackle the barriers to delivery, increasing housing supply will remain extremely challenging.”

The NHBC said affordability pressures were continuing to weigh on demand, while barriers to development were constraining the delivery of new homes.

The fall was not uniform across the UK. Registrations rose by 27% in Yorkshire and the Humber and by 10% in the West Midlands, while Scotland recorded a 5% decline.

Ahead of the Budget, Mr Pearce called for measures to help buyers alongside changes to make it easier for developers to build.

“Sustainable growth will require action on both demand and supply – improving affordability for buyers while creating conditions for developers and investors to build with confidence by considering delivery costs, planning and regulatory constraints and investment barriers,” he said.

“The Budget is an important opportunity to make progress on both sides of the equation.”