HTB comments on ONS construction data

12 February 2026

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

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

“Recent data highlights the strain across the sector. Housebuilding remains the weakest part of construction, and the Home Builders Federation has warned that viability pressures are mounting. Low approval levels, rising costs and policy burdens are combining to make it harder for builders to bring forward new schemes, particularly at a time when certainty and timing matter most.

“The real issue is that delay does lasting damage. Each pause in decision-making erodes viability, reduces pipeline and weakens delivery capacity, especially among SME developers. For smaller and regional developers, that uncertainty is far harder to absorb, because prolonged delays directly constrain cash flow, site turnover and the ability to reinvest. Improving output will require sustained investment in planning capacity and far greater consistency across the system. Developers need confidence that approvals will translate into starts and that delays can be managed realistically. What is often overlooked is the time lag in development. Decisions delayed today will feed through into weaker output in the years ahead.

“Without a renewed focus on delivery, confidence and consistency, the risk is that housing supply continues to fall short regardless of how strong the stated ambitions may be.”