HTB comments on ONS construction data

13 November 2025

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

“As these figures show, construction remains under real pressure. Last week S&P’s construction PMI reported the tenth consecutive month of decline, with housing seeing its steepest fall in eight months. Confidence is fragile, and viability is tightening. Rising costs, extended timelines and local delays mean many schemes simply do not stack up, even when demand is strong.

"From regulation and planning to securing skilled workers, developers, and particularly SMEs, face mounting challenges. The appetite is there from developers, and the need is clear among homebuyers and tenants. Lenders have the capacity to fund viable schemes, but uncertainty over timing and delivery continues to hold projects back. The pressure is not evenly spread. Developers in some regions face longer waits for planning and greater pressure on labour, making it even harder for smaller firms to stay active.

"For all the Budget speculation around tax, the real opportunity lies in construction. With proper investment, the Government can help secure the housing delivery pipeline, resource planning departments, and tackle the skills shortage that threatens long-term capacity. Each new initiative brings promise, but the reality on the ground has barely shifted. Real progress depends on partnership between policymakers, lenders and developers, and what the sector needs now is follow-through, not another reset. The sector underpins jobs, housing and investment, and it needs stability, consistency and the confidence to deliver.”