ONS data reveals struggling market
Official data from the Office for National Statistics has found that UK housing starts have lagged behind completions for the sixth successive quarter.
Around 32,000 homes began construction in the last quarter of 2024, compared to just over 49,000 completed during the same period.
In the preceding quarter there were 37,000 housing starts; well below the average of 42,000 starts per quarter since April 2022.
Completions rose from 41,500 in the third quarter of 2024.
Meanwhile, the Construction Products Association (CPA) has published its 2025 Spring Forecast, predicting modest growth for the industry in 2025 and stronger growth for 2026.
However, US tariff uncertainty “threatens to overshadow UK construction growth”, and the Spring Forecast excludes any potential impacts of Trump’s fiscal actions.
The CPA expects total construction output to grow by 1.9% in 2025 and 3.7% in 2026. This has been revised down slightly from the Winter Forecast, due to a slow start to activity this year and weaker UK economic growth prospects.
In private house building, activity continues to recover gradually, but house builders reported that it has been a slower start to this year than anticipated, as affordability and a lack of demand remain the key constraints, with mortgage rates remaining high and no government policy stimulus.
HBF calls on mayors for “bold and immediate action”
The Home Builders Federation (HBF) has called on the four incoming metro mayors to take “bold and immediate action to confront the ongoing housing crisis”, ahead of local elections on 01 May.
Mayoral elections are being held in Cambridgeshire and Peterborough, Hull and East Yorkshire, Greater Lincolnshire, and the West of England.
The HBF said: “The elections present a pivotal moment for new mayors to harness the powers granted by the English Devolution Bill and the Planning and Infrastructure Bill as part of the Government’s devolution agenda. These powers have the potential to unlock much-needed housing supply, drive economic growth, and enhance the quality of life for local residents.”
The HBF has released a Mayor Manifesto for incoming Combined Authority Mayors that outlines a series of strategic recommendations. The manifesto emphasises the importance of taking immediate action to address housing needs and outlines how mayors can leverage their new powers to drive housing delivery and regional development.
Persimmon enjoys good start to year
Volume housebuilder Persimmon has published a trading update in which it reported a good start to the year, with a slight increase in private sales rate.
Its net private sales per outlet per week, excluding bulk sales, were up 3% to 0.65 during the period from 1 January to 27 April 2025.
The firm’s private forward sales rose 17% to £1.68bn over the same period.
Meanwhile, Taylor Wimpey remains on course to deliver 10,400 to 10,800 homes in 2025 amidst a “resilient” market.
In a trading statement, the firm said its net private sales rate for the year to 27 April was 0.77, with a cancellation rate of 16%. Total order book value stood at £2.3bn, representing 8,153 homes.
Housing View 