Building safety delays hit London homes starts as registrations slump more than 50% in second quarter

The impact of building safety regulations hammered the number of new homes being built in the capital in the second quarter of this year.

Figures from the National House Building Council (NHBC) show registrations slumped 59% in London to just 904 in the three months to June.

The NHBC, which provides new home warranties and insurance, said: “London saw the biggest fall as the capital continues to be affected by the new building safety regime for high rise buildings and a depressed level of activity from housing associations.”

But this week’s figures show 30,405 new homes were registered to be built in Q2, up 4% the same period last year and 4% more than the first quarter of this year.

Across the UK, six out of 12 regions saw a rise in registrations in Q2 compared to the same period last year, with the highest increases in Yorkshire and Humberside (+96%), the South west (+75%) and Northern Ireland (+44%).

NHBC chief executive Steve Wood said: “While some areas of the market remain subdued, we remain optimistic about the longer-term as planning and land restraints are increasingly unblocked, mortgage rates ease and the Government sustains a focus on new home delivery.”

Recent figures from the Building Safety Regulator show that the average amount of time it is taking to get gateway 2 safety sign-off is nine months – three times the planned 12 weeks timeframe.

And last month, the real-world impact of building safety delays was revealed by piling contractor Van Elle who said its biggest division had seen income fall by nearly 20% and its London operations slump into the red as a result.