The UK’s housing market showed mixed signals in Q4 2024, with a sharp 52% year-on-year rise in housing starts offset by a 9% decline in completions, according to the latest data from the Ministry of Housing, Communities & Local Government.
Between October and December 2024, building work commenced on 30,860 new dwellings (seasonally adjusted), marking a 7% increase from the previous quarter. However, the number of completed dwellings during the same period stood at 36,830, representing a modest 2% quarter-on-quarter rise but a notable annual drop of 9%.
But there are ongoing challenges in delivering finished homes. The number of net additional dwellings for 2023-24 fell by 6% to 221,070, while the number of new dwelling Energy Performance Certificates (EPCs) lodged in Q4 2024 dropped by 7% year-on-year. Over the full year, EPC lodgements declined by 6%, reinforcing concerns over the slowdown in housing completions.
Despite these setbacks, net additional homes delivered in England between April 2024 and March 2025 are estimated at 199,100, with 142,800 of these delivered since the start of the new Parliament in July 2024.
NEW COUNCIL TAX REGISTRATIONS
However, new council tax band registrations have also dipped, with a 9% drop in the net increase of domestic properties.
The surge in housing starts signals confidence from developers, but the decline in completions suggests ongoing supply chain disruptions and labour shortages may still be hindering the timely delivery of new homes.
Industry experts warn that unless completions catch up with starts, the government’s targets for housing supply may remain out of reach.
MOVING FORWARD
Neil Leitch, Managing Director, Development Finance at Hampshire Trust Bank, says: “An increase in housing starts is encouraging. It shows that developers are still finding ways to move forward, despite the wider pressures they face.
“The question now is how long that momentum can last, especially given the recent drop in planning approvals. Without a strong pipeline of consented sites, start volumes could prove difficult to sustain.
“The Government’s target of 1.5 million new homes is well known, but the route to delivering them remains unclear.
“The planning system is still a real bottleneck. Local authorities are stretched, and developers – particularly SMEs – are waiting too long for decisions. That’s before you factor in the cost pressures, labour challenges and broader uncertainty facing the market. For smaller housebuilders trying to keep sites moving, those delays can be critical.”
FINANCE AND FUNDING
And he adds: “Finance is another key issue. Developers need funding that reflects the way schemes work – often in phases, often with moving parts. It’s no longer about fitting a project into a product. It’s about structuring around what the site needs. Without that kind of flexibility, starts stall and completions get pushed further out.
“We need to look at the whole delivery chain. Planning, funding, and the wider infrastructure need to support each other if we’re going to make consistent progress. Starts matter, but completions matter more. It’s not just about how many get underway. It’s about how many reach the finish line, and how reliably we can keep that pipeline moving.”
