Steve Reed applauds “green shoots of recovery”
Official data published by the Office for National Statistics (ONS) has revealed an 18% increase in new build starts in the year ending September 2025 when compared to the previous year.
Around 118,000 new homes were built during the period, with nearly 30,000 starts between July and September – an increase of 3% on the same quarter in 2024.
The data also shows that around 309,600 homes have been completed since the start of the current Labour government. Housing Secretary Steve Reed has pointed towards recent planning reforms as a key driver of the uptick, which he said represents “green shoots of recovery”.
However, ONS figures have also revealed a -1.3% fall in total construction output in November 2025, following a downwardly revised decrease of -1.2% in October.
The key drivers for the monthly decrease in November was down to new work (-1.9%) and repair and maintenance (-0.4%).
The ONS reported: “Anecdotal evidence suggests that delays in work and customer spending were affected by economic uncertainty ahead of the autumn budget announcement.”
Construction vacancies fall amidst cooling labour market
A report by KPMG and the Recruitment and Employment Confederation has revealed that vacancies in the construction sector declined sharply in December 2025, as a wider cooling labour market led to less work.
Construction saw the third fastest monthly decline, behind IT & Computing and Secretarial / Clerical. No sectors saw an increase in demand for permanent staff in December, with engineering recording the shallowest drop.
Demand for temporary workers in the construction sector also saw a sharp decline, according to the survey.
Developer and supply chain updates
Vistry Group said it has met full-year expectations after a particularly strong second half, with adjusted pre-tax profit for 2025 expected to rise to around £270m despite a 9% fall in completions.
Revenue is forecast to be broadly flat at £4.2bn as total output slipped to about 15,700 homes, reflecting weaker demand from affordable housing partners earlier in the year.
The partnerships housebuilder said recent government affordable housing measures supported improved trading in the second half.
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Taylor Wimpey increased completions by 6% to 11,229 homes in 2025, lifting revenue to around £3.8bn on the back of higher volumes, selling prices and land sales.
Group operating profit is expected to edge up to about £420m, although margins fell to around 11% and are set to face further pressure from softer bulk pricing, a weaker order book and ongoing build cost inflation.
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Persimmon said it performed well in 2025, with completions up 12% to 11,905 homes and underlying pre-tax profit expected at the upper end of its £415m–£440m guidance range.
Average selling prices rose 5% to around £301,000, while sales rates were flat year on year, with some softening in the build-to-rent market late in the year.
The housebuilder said its housing operating margin is likely to come in at the lower end of its expected 14.2%–14.5% range.
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Allison Homes has secured a £165m refinancing package with HSBC, NatWest and Homes England to support its next phase of growth.
The funding, backed by Homes England’s Home Building Fund, will help the regional housebuilder accelerate land acquisition and move towards its target of delivering 2,000 homes a year.
The business said the deal strengthens its balance sheet and underpins expansion across both its partnerships and open-market divisions.
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MJ Gleeson said full-year results are expected to be in line with market expectations, with pre-tax profit of around £24.3m and close to 2,000 completions.
In the first half, Gleeson Homes increased sales by 6% to 848 units, with net reservation rates improving to 0.75 per site per week and a significantly stronger forward order book.
The business enters the second half with 978 plots secured, supporting delivery momentum into year end.
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