HTB comments on latest ONS Construction Output data

15 October 2026

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

“The Government is understandably keen to get more people onto the housing ladder, but there is a concerning disconnect between the ambition to stimulate demand for new homes and what is happening across the construction industry. Encouraging more people to buy new-build homes is one thing, but developers also need to be in a position to respond to that demand. That requires a consistent pipeline of viable schemes and sufficient confidence for developers to commit capital and start building. Now, there simply isn’t enough of either.

“There is a danger that too much attention is being placed on the demand side of the housing market without addressing whether the industry can deliver the additional homes required. For SME developers in particular, increasing output is not something that can happen overnight. Decisions about which schemes to progress, where to commit capital and when to start on site are made well in advance.

“If we want a sustained recovery in housebuilding, measures to support buyers need to be matched by conditions that encourage developers to build. That requires greater certainty around planning, viability and the route to delivery. Otherwise, we risk making the existing imbalance between supply and demand even worse, putting yet more pressure on developers and those trying to get onto the housing ladder. We need to prioritise homes over headlines.”