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UK new home registrations slip in third quarter - industry body

Published 29/10/2015, 00:05
© Reuters. Houses are seen in London

LONDON (Reuters) - The number of new homes registered in Britain slipped during the third quarter compared with a year ago, according to a survey that adds to mixed signals about the supply of new homes amid renewed house price pressure.

The National House Building Council said on Thursday that new home registrations, which take place at least three weeks before building starts, fell to 36,219 from 36,955 in the third quarter a year ago -- a 2 percent drop.

With house prices and mortgage approvals on the rise again after weakening through much of 2014, the supply of new homes is a hot political topic in Britain.

Official data this week showed construction output suffered its biggest contraction in three years in the July-September period, dragging on British economic growth.

The NHBC said public sector new home registrations accounted for the steepest fall in third quarter, which it linked to housing associations holding back on developments in light of welfare reforms and a cap on how much they can raise rents.

Last year saw the highest number of new housing registrations since 2007, and figures so far this year suggest 2014's total is on track to be beaten.

Total new home registrations for the first six months of 2015 were up 14 percent compared with the same point in 2014, and for 2015 so far total 117,525.

"Despite the marginal drop in housing registrations this quarter, 2015 is still promising to be a strong year for new housing growth in the UK," said NHBC chief executive Mike Quinton.

A survey of British construction companies from Markit/CIPS reported increased housebuilding during September, in contrast with the downbeat official data.

© Reuters. Houses are seen in London

The NHBC report precedes a batch of housing market releases on Thursday, with the Nationwide house price index due at 0700 GMT, followed by Bank of England mortgage approvals data at 0930 GMT.

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