Richard Pike, Chief Sales and Marketing Officer at Phoebus Software, reacted to the release of December’s S&P UK Global Construction PMI, which marked a challenging end to 2025 for UK housebuilders.
“December rounded off a dismal year for UK housebuilders with another sharp fall in activity – although the rate of contraction eased from November’s five-and-a-half-year low. Even though interest rates have stabilised and demand for homes remains high, confidence remains weak. Build costs also remain high, and the construction sector has been hit particularly hard by labour shortages, with overall unemployment now at 5.1%.
On the positive side, there was a recovery in optimism in December – the highest for five months – and with the Budget out of the way, there is more certainty for developers, which should encourage investment. Going into 2026, falling rates and improving affordability will stimulate demand, but more radical action is needed to remove bottlenecks in the planning system, force the volume players to get building and support smaller developers with incentives.”
