UK house prices may be slowing, but October was the best month for new houses since 2011

 
Billy Ehrenberg
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London had the most completions but the slowest positive change (Source: Getty)

UK house prices may be waning, but October was the strongest month for new housing in the UK since 2011.

According to data from the National House Building Council (NHBC), 13,950 new homes were registered this October, beating every month since June 2011, when 14,565 homes were registered. Of this month's registrations, 11,151 were private sector; and 2,799 public sector.

The quarter to August also showed strong figures, with a total of 37,140 new builds, compared to 32,716 for the same period last year.

The following chart shows where the new builds were registered:

As the chart shows, the majority are in England. Within England itself, London, perhaps unsurprisingly, is leading the way.

However, if we look at the difference in the numbers between this October and last October there is further evidence suggesting why the prices in London are so high: registered new builds were up eight per cent on last October in the capital, while figures were higher for all but two of the eight other regions.

Of the countries within the UK, Scotland saw the biggest rise when comparing October 2014 to the same month last year. The Isle of Man has been excluded because of its small sample size is distorting.

The figures look positive, but NHBC chief executive Mike Quinton believe caution is necessary.

The October figures show that the UK housebuilding industry is continuing to build on the strong new housing volumes seen in 2013. All the signs are that 2014 will be another encouraging year with growth being registered across all parts of the UK.

While this is obviously positive news, we know that the industry is working from a historically low base so there is still much work to do to ensure this momentum continues.

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