ONS comments on new construction data showing private housebuilding fall

12 June 2026

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

“A fall in private housebuilding will not come as any great surprise to those working across the sector. Just last week, S&P Global’s latest construction PMI showed the sector shrinking at its fastest rate in six years, which reflects the pressure developers are still working through across the market.

When I speak to developers, the conversation is rarely about demand. Demand is there, but what’s missing is confidence. Developers are making long-term decisions whilst dealing with planning uncertainty, tighter viability and less flexibility once projects move into delivery, so it is little wonder output has slowed.

The planning delays that have plagued the industry for years are still there, but now there is the added issue of unpredictability. Outcomes can vary significantly between authorities, and even well-prepared schemes can face uncertain timings and inconsistent decisions. That inevitably makes developers more cautious about how and when they commit capital. We are seeing developers place far greater emphasis on deliverability and realistic assumptions before schemes move forward.

Land expectations have not always adjusted to reflect changing market conditions either, which means margins remain finely balanced across many schemes.

We also need to remember that today’s output reflects decisions made months or even years ago. The bigger question now is what current conditions mean for the pipeline of schemes coming through tomorrow.

In a market like this, certainty becomes increasingly important. Well-structured schemes supported by consistent capital and direct access to decision-makers are better placed to maintain momentum through delivery.”