HTB comments on new ONS construction figures

12 September 2025

Neil Leitch, Managing Director of Development Finance, Hampshire Trust Bank:

“These figures point to growth in new private housing, but they come against eight straight months of slowdown reported by S&P Global. The government’s pledge to deliver more than a million homes this Parliament already looks out of reach. Developers want to build, and lenders are ready to support them, but the delivery chain is simply not strong enough to turn ambition into delivery.

Begbies Traynor’s research has shown how many construction firms are already under financial strain. When margins are this thin, one setback can derail a scheme and weaken the pipeline of homes coming through. Approvals and starts do not guarantee completions, and unless projects can move through that delivery window, the shortfall will only grow.

The answer is not just planning reform. Planning teams need proper resourcing, SME builders need the confidence to commit capital, and we must bring new people into the industry before the skills gap becomes irreversible. Without those foundations in place, targets will remain headlines rather than homes.”