Housing delivery in England recorded a modest increase in early 2026, with new data suggesting around 48,000 net additional homes were delivered in the first quarter of the year.

Figures based on Energy Performance Certificate (EPC) lodgements, published by the Ministry of Housing, Communities and Local Government, show a 6% rise compared with the same period in 2025.

The data provides a more frequent indicator of housing activity than annual delivery statistics and includes new build homes alongside conversions and changes of use.

In the 12 months to March 2026, around 204,000 EPCs were lodged for new dwellings, representing a 2% increase on the previous year.

The figures are being used as a proxy measure for housing delivery trends, particularly as the sector continues to track progress towards the government’s 1.5 million homes target.

Regional performance varied significantly, with London recording the largest increase in EPCs for new dwellings between Q1 2025 and Q1 2026 at 44%, while the North West saw an 8% decline.

Housing market shows stabilisation but regional variation remains

Recent trading updates from major housebuilders suggest conditions have stabilised following a period of volatility.

Barratt Redrow reported resilient demand and strong forward sales in its latest trading update for the period to 29 March 2026, indicating steady near-term activity.

READ MORE: Galliford Try Cardiff tower development shortlisted for Constructing Excellence Wales Awards

However, the company also highlighted increased uncertainty linked to geopolitical developments in the Middle East, including potential impacts on energy costs, build cost inflation and interest rate expectations.

These factors are expected to feed through into the wider construction supply chain over the coming months.

Alongside global economic risks, domestic policy changes are also expected to affect delivery costs across the housing sector.

Upcoming requirements such as the Future Homes Standard, alongside measures including the Building Safety Levy and potential changes to landfill tax, are expected to increase development costs, particularly in already margin-sensitive schemes.

Housing delivery gains remain fragile amid economic uncertainty

Dr David Crosthwaite, chief economist at BCIS, said: “EPC data provide a useful indicator of housing delivery, particularly given the lag in official net additional dwellings statistics. The increase in the first quarter compared with last year is encouraging, but it needs to be viewed in the context of the current backdrop to the sector.

“The market is not yet showing sustained, broad-based recovery, and we have the cost implications of conflict in the Middle East beginning to feed through.

“This wider economic uncertainty, as well as regional variations in progress, suggest that delivery could remain uneven over the course of the year.

“In addition to the potential uplift in costs stemming from higher energy and manufacturing inputs, the current climate of uncertainty is also likely to weigh on homebuyer confidence, which could influence demand and, in turn, the pace of delivery over the coming months.”