The government’s ambition to deliver 1.5 million new homes during the current Parliament has suffered another setback after the latest figures showed housebuilders started fewer developments for the second consecutive quarter.

New data from the National House Building Council (NHBC) shows 29,162 new homes were registered to be built in the second quarter of 2026, down 4% from 30,259 in the same period last year, as developers continued to grapple with rising costs and economic uncertainty.

The figures come just days after housing secretary Angela Rayner acknowledged that meeting Labour’s flagship housebuilding target would be “really difficult”, adding to growing doubts over whether the government can deliver on one of its central election pledges.

Daniel Pearce, chief strategy officer at NHBC, commented: “Elevated interest rates, geopolitical volatility and rising costs combined with affordability pressures impacting consumer demand, meant that many house builders slowed their build programmes in the second quarter.

“While the decline in new home registrations will come as little surprise, we welcome the commitment from new prime minister Andy Burnham to roll out the most ambitious council house-building programme since the post-war era; this will be an important lever in boosting overall supply. Greater clarity on the mechanisms and funding to deliver this will be welcomed by the industry and house builders stand ready to play their part.

“Accelerating planning reform and easing regulatory burdens would also help boost housing supply, while measures to improve affordability for prospective buyers are essential to unlocking demand.”

Across the UK, half of the 12 regions saw a decline in registrations in Q2 2026 compared to Q2 2025, with the biggest decreases in the South West (-42%), East Midlands (-36%) and Wales (-34%). London saw the greatest rise (+170%), with the North West (+37%), East of England (+15%), South East (+12%), West Midlands (+7%) and Scotland (+6%) also experiencing an uplift.

An increase in London registrations may offer some encouragement for the capital’s house-building market, but Daniel Pearce, Chief Strategy Officer at NHBC cautioned: “Registration volumes in London are often more volatile than elsewhere in the country, with large developments frequently registered over short periods rather than evenly throughout the year. This reflects the prevalence of large, high-density schemes, which typically involve longer planning and delivery timelines before substantial volumes of units are brought forward and registered, creating more pronounced peaks of activity.

“The next two quarters of NHBC data should provide a clearer indication of whether this upward trend for London is sustained,” he added.