Phoebus reaction to latest housebuilding figures

06 August 2026

Richard Pike, sales and marketing director at Phoebus Software:

"There are some positive signs in the latest UK construction PMI that the downturn is starting to stabilise with output at its highest levels for four months. However, the sector remains in contraction, with housebuilding continuing to underperform the wider construction sector.

Unfortunately, deep structural issues in the property market remain. Affordability pressures and economic uncertainty mean many prospective buyers are delaying moves. Developers, in turn, are reluctant to bring forward new sites when demand remains uncertain. The result is constrained housing supply, which helps keep prices elevated and limits any meaningful improvement in affordability. It's a self-perpetuating cycle. Buyers are waiting for confidence to return, while developers are waiting for buyers to return.

“Breaking that deadlock requires stable economic conditions, a clear and consistent housing strategy, planning reform and a more efficient homebuying process. This will give buyers, lenders, and developers the certainty they need to invest and transact with confidence.

“Until confidence returns across the housing market, construction activity is likely to remain subdued, and any recovery is likely to be very slow and gradual."