HTB comments on ONS construction data

15 January 2026

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

“These figures reinforce what has been evident throughout 2025. It has been a disappointing year for housebuilding, marked by a persistent gap between ambition and delivery. Developers want to build, demand from buyers and tenants is clear, but the conditions required to move schemes forward with confidence are still not in place.

“Planning remains the most significant structural issue. The challenge is not intent, but capacity and consistency. Planning departments are under-resourced, decision times are lengthening, and experienced planners are leaving the profession. Without sustained investment in skills and local authority capacity, reforms on paper will struggle to translate into homes on the ground, including the proposed changes to the National Planning Policy Framework.

“While central government has introduced funding to support the recruitment of junior planners, industry estimates suggest the overall pipeline remains thin, with fewer new entrants than the sector needs to replace those leaving. Local Planning Authorities also struggle to compete with the private sector on pay and career progression, making retention increasingly difficult and placing further strain on already stretched teams.

“There is no single fix for these issues, but confidence is the critical missing ingredient. Developers, particularly SMEs, need certainty that approvals will lead to starts and that delays can be managed realistically. What is often overlooked is the time lag in development. Decisions delayed today will translate into weaker output years down the line, long after the focus has shifted elsewhere. Funding is available for well-structured, viable schemes, but projects need flexibility built in from the outset to cope with the realities of delivery. Without that confidence and consistency, the risk is that 2026 looks much like 2025.”