Comment on ONS construction output figures – private housing

12 December 2025

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

“These figures simply reinforce what we have seen throughout 2025. Housebuilding has struggled to gain any real momentum and the gap between ambition and delivery remains significant. Developers want to build, but they are operating in conditions where viability is tightening and the system around them is not providing the clarity or support required to maintain activity.

Planning remains a significant obstacle and the pressure on the system is growing. A recent study from the Royal Town Planning Institute suggests that one in five planners intends to leave the profession or retire by 2028. The system is already stretched and decision times are lengthening. Losing that level of expertise will make it even harder to secure timely approvals, particularly in regions where capacity is already thin. It also widens the gap between the permissions being granted and the number of schemes that actually start on site.

We are at a point where the sector needs more than a change of tone from government. It needs consistency, capacity and follow-through. There will no doubt be talk of a fresh start in the new year, but we have heard that before. Real progress depends on partnership between policymakers, developers and lenders who understand the realities of delivery. Construction underpins jobs and economic growth across the UK, and without stability and a functioning planning system the risk is that 2026 becomes another year where output falls well short of what the country needs.”