Phoebus comments on S&P Global UK Construction PMI

06 October 2026

Richard Pike, chief sales and marketing officer at Phoebus Software:

“This is still a worrying reading for a housebuilding sector that was already under mounting pressure. August saw the sharpest contraction of the current downturn, so another fall would suggest that the weakness in residential construction is becoming increasingly entrenched rather than simply reflecting a difficult month.

“What makes this particularly significant is that the Government has now introduced a major attempt to stimulate demand through its Your First Home scheme. The promise of a 2.5% deposit and 20% equity loan could help some first-time buyers overcome the deposit barrier, but it will only translate into more homes being built if developers have the confidence to respond with new supply.

“That is the difficult part of the equation. Builders are still dealing with high borrowing costs, construction costs and a weaker market, while the latest mortgage data shows buyer demand remains subdued. The Budget now needs to provide greater certainty on how the Government intends to turn its demand-side support into sustained housebuilding. Otherwise, we risk making it easier to buy homes without doing enough to ensure there are enough of them.”