Private sector home registrations soar 62% as developers regain momentum.
Advantage Home Construction Insurance explores what’s behind the rise and what it means for the future of UK housebuilding.
The UK housing market has started 2025 on a positive note, with market figures showing a 62% increase in private sector home registrations in Q1 compared to the same period in 2024. A total of 20,653 new private homes were registered between January and March—marking a significant uplift in activity and confidence across the industry.
Meanwhile, the rental and affordable housing sector saw a modest decline of 2%, with 8,703 new homes registered. While relatively small, this dip highlights ongoing challenges in affordable delivery, despite strong demand.
All told, the UK recorded 29,356 new home registrations in the first quarter of the year—a 36% increase year-on-year, and a 17% rise compared to Q4 2024.
Market Momentum Meets Regulatory Challenges
Not all segments of the market have experienced growth. Apartment registrations fell by 3% in Q1, driven in part by ongoing delays in high-rise approvals under the Building Safety Regulator’s new gateway system. These regulatory complexities are creating bottlenecks, particularly in London, which saw a 38% drop in overall registrations—the only UK region to record a year-on-year decline.
Outside the capital, however, growth has been encouraging. Key regional increases include:
- Wales: +116%
- East Midlands: +102%
- West Midlands: +51%
This shift suggests developers are increasingly focusing on low-rise housing in regional areas, where planning conditions and regulatory pathways are less restrictive.
Low-Rise Demand on the Rise
Registrations for non-apartment house types surged during Q1, with detached homes and bungalows leading the charge at +63% and +54%, respectively. This trend reflects a growing appetite for spacious, family-friendly housing—particularly outside major urban centres.
Completions for the quarter stood at 26,120 homes, representing a slight 1% dip from Q1 2024. However, the sharp rise in registrations signals a strong development pipeline for the months ahead.
Advantage’s Perspective: Signs of a Market Rebound
At Advantage Home Construction Insurance, we view these figures as a positive indicator of renewed momentum in UK housebuilding.
Several market tailwinds are helping to drive this recovery:
- Lower mortgage rates
- Easing inflation
- Increased availability of lower-deposit mortgage products
- A stronger-than-expected spring sales season
These factors are restoring confidence among developers, particularly those focused on lower-rise and regional housing schemes.
“Confidence is returning to the market, and it’s encouraging to see developers actively planning ahead again. Now is the time to support this momentum with strong protections and high-quality delivery.”
— Advantage Home Construction Insurance
Supporting Affordable Homes & Sustainable Growth
While private housing leads the recovery, affordable housing remains a national priority. The government’s £2 billion investment to deliver up to 18,000 new affordable and social homes is a welcome move, and further support through the Affordable Homes Programme is expected later this year.
For housing associations and developers alike, stability and long-term protection are critical. At Advantage, we provide 12-year structural warranties designed to reduce risk, protect investment, and support delivery—whether it’s a small regional site or a large-scale scheme.
Looking Ahead: Quality Over Quantity
As the market gains pace, the focus must remain on quality. Every new home, regardless of its tenure or type, must meet high construction standards. Long-term success in UK housebuilding hinges not just on the number of homes delivered, but on their durability, sustainability, and safety.
At Advantage, we’re proud to play our part in that mission.
Whether supporting private developers, housing associations, or build-to-rent providers, our goal is simple: to give our partners the confidence to build—and keep building—with quality and care at the core. Get in touch today!
