New build starts up 6% in Q2, with regulator reporting in the count

Liz Hargreaves

Liz Hargreaves is a development specialist covering planning, build costs, permitted development, and new-build delivery. She has a background in residential development and property finance.

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THE PROPERTY FILTER TAKE

  • New build starts in England rose 6% to 35,910 in Q2 2026 (seasonally adjusted), 20% up on a year earlier (MHCLG, 24 September 2026).

  • The timeline implication: MHCLG says the higher number of starts since 2025 Q4 is in part due to the Building Safety Regulator reporting more starts, and Q2 completions fell 3% to 35,800.

  • Consider checking your region's figures and the next release, expected in December 2026, before building a rising-supply assumption into a development timeline.

New build starts in England rose 6% in the second quarter of 2026 to 35,910 homes, according to MHCLG's housing supply release of 24 September 2026. The figure is seasonally adjusted (corrected for normal seasonal swings) and 20% higher than the same quarter of 2025. But MHCLG says the higher number of starts since 2025 Q4 is in part due to the Building Safety Regulator reporting far more starts than before. Mortgage Strategy also reported the figures.

How much of the rise comes from new reporting?

The figures come from building control data (inspection records for new homes, collected from councils and private inspectors). MHCLG estimates this covers about 80% of house building in England. Since October 2023 the Building Safety Regulator has been the building control authority for higher-risk buildings in England. That includes new residential blocks over 18 metres or seven storeys with at least two homes (MHCLG).

And its numbers have jumped. The regulator reported 7,089 starts in 2025 Q4, 6,276 in 2026 Q1 and 5,758 in 2026 Q2, according to MHCLG. Its previous highest quarter was 1,206, in 2025 Q3. MHCLG says the higher starts in those three quarters are "in part" due to this reporting, following reforms at the regulator announced in June 2025 to speed up housebuilding.

So part of the higher level reflects the regulator reporting more starts on higher-risk buildings. Its own count fell from 6,276 in Q1 to 5,758 in Q2 (MHCLG).

The longer view is weaker. MHCLG says Q2 starts are still 47% below their 2023 Q2 peak. MHCLG says that peak was unusually high because many builders may have brought starts forward to avoid new standards on energy performance and electric vehicle charging. The transition period for those standards ended on 15 June 2023. For readers following development and investment strategies, starts remain well below that peak.

Where are homes being started and finished?

Completions tell a flatter story. MHCLG puts Q2 2026 completions at 35,800 (seasonally adjusted), down 3% on the previous quarter and up 1% on a year earlier. Over the year to 30 June 2026, which is not seasonally adjusted, starts rose 15% to 136,330, while completions were unchanged at 143,770 (MHCLG).

The regional split is uneven. In the year to 30 June 2026, London starts rose 298% to 16,290, and the North East rose 24%, according to MHCLG. The South East fell 10%. Starts rose in seven of the nine English regions. If you assess sites by area, the Property Filter deal sourcing software can help you compare local markets before committing.

What does the starts pipeline mean for timelines?

A start is a home that is not yet finished. MHCLG describes these figures as a leading indicator of overall housing supply. With annual starts up 15% and completions flat, the gap is the timeline question for anyone building or buying new stock in England.

The planning pipeline points the other way. Permission was granted for 212,000 homes in the year to 30 June 2026, down 12% from 242,000 a year earlier. These are provisional figures in the MHCLG release, from contractor data rather than accredited statistics. MHCLG notes that many permissions never become homes, and that building time lags shift output between periods. Before pricing a scheme, our free property calculators can help you test how a slower timeline affects the numbers.

The government target is 1.5 million homes this parliament. MHCLG estimates that 437,900 net additional homes (new homes, including conversions, after demolitions) were delivered in England between 9 July 2024 and 20 September 2026. On that estimate, which is based on energy certificates for new homes and subject to revision, that is about 29% of the target. The next quarterly figures, for July to September 2026, are expected in December 2026 (provisional), and the fuller net additional dwellings release is due in November 2026 (MHCLG). You may wish to check our free property resources while you wait for those updates.

Key takeaways

  • New build starts in England rose 6% to 35,910 in Q2 2026 (seasonally adjusted), 20% up on Q2 2025 (MHCLG).

  • MHCLG says the higher starts since 2025 Q4 are in part due to the Building Safety Regulator reporting 5,758 to 7,089 starts a quarter, against a previous high of 1,206.

  • Q2 2026 completions fell 3% to 35,800, and annual completions were unchanged at 143,770 while annual starts rose 15% to 136,330.

  • Planning permissions fell 12% to 212,000 homes in the year to 30 June 2026 (provisional).

  • The next quarterly release, covering July to September 2026, is expected in December 2026.

Frequently asked questions

Do these figures cover the whole UK?

Is the rise in starts only a reporting effect?

When is the next update?

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified professional before making investment decisions.