Phoebus reaction to latest housebuilding figures

04 September 2026

Richard Pike, sales and marketing director at Phoebus Software:

"This is a tough time for the UK housebuilding sector, and today's figures are a reminder of just how tough. Builders are being squeezed from both sides – costs continuing to rise, while demand is stifled by affordability constraints and higher mortgage rates.

“Construction activity hit a six-year low back in May, and while it had started clawing back some ground over the summer, this fall shows how fragile that recovery really is. And the pressure is only building: gilt yields hit their highest level since 1998 this week, and oil prices are climbing again. Both add to the cost burden housebuilders are already struggling with.

“Bellway and Barratt Redrow have both called on the government to act – Bellway specifically wants an immediate stamp duty cut alongside a deposit support scheme for first-time buyers – but the new PM seems cool on the idea, and it remains to be seen whether he has the fiscal room to introduce it anyway. Something needs to be done to stimulate demand. Without it, supply will keep contracting in a downward spiral, and today's figures are a warning sign of exactly that."