CPA revises projection downwards
The Construction Products Association (CPA) has downgraded its forecast for UK construction output for 2026 from 2.8% to 1.7%.
In its Winter Forecast, the firm reported that a slowdown in activity has persisted throughout 2025, with decision makers becoming increasingly risk-averse.
Private housing is a key driver for the downgrade, with site viability a key challenge for developers struggling with a flat sales market and increasing build costs due partly to increased regulation.
Private housing output is forecast to grow by only 1.5% in 2026, revised down from a forecast of 4.0% three months ago.
Positive start to the year – Zoopla
UK house prices rose by 1.2% last year, according to property website Zoopla.
The average property is now valued at £269,800.
The firm also noted that “the housing market has recorded a strong seasonal increase in buyer interest in January, following a quieter end to 2025.
Many would-be buyers delayed moving decisions late last year due to Budget uncertainty, but our data shows confidence has started to return.”
Government announces Section 106 measures
The government has announced emergency measures to ease pressure in the Section 106 affordable housing market, allowing councils to vary the tenure of uncontracted homes where developers have been unable to secure registered provider buyers.
Under the time-limited scheme, homes must be listed on the Homes England Clearing Service and meet strict conditions, while ministers stressed that S106 agreements remain central to affordable housing delivery.
Alongside this, the government set out plans for a longer-term “reset” of the system, including a template S106 agreement, clearer sector expectations and expanded low-interest lending to support registered providers, with full reforms due in the spring.
Second phase begins for New Homes Accelerator
The government has expanded the New Homes Accelerator to cover smaller sites and boost support in London, launching a second phase aimed at unlocking stalled developments and accelerating delivery.
Ministers said the programme has already helped progress more than 125,000 homes since August 2024 and will now include sites of fewer than 500 homes, alongside a new London-focused strand delivered by the Greater London Authority.
Seven additional sites have joined the scheme, adding almost 60,000 homes, as the government pushes to meet its target of building 1.5 million homes this parliament.
Developer and supply chain updates
rest Nicholson has made around 50 redundancies and closed its Chiltern office as part of its shift towards the mid-premium housing market, while confirming full-year profit below earlier guidance.
Adjusted pre-tax profit for the year to October was £26.5m, up year on year but below the £28m–£38m range, reflecting weaker second-half market conditions.
The housebuilder said progress under its Project Elevate transformation plan included tighter inventory control, land sales to right-size the portfolio and organisational restructuring to improve returns.
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The Hill Group has completed a full refinancing of its revolving credit facility, increasing total committed funding to £300m as it targets a doubling of the business to £2.3bn by 2030.
The facility, which has been the group’s main source of debt funding since 2015, was refinanced for a third time with HSBC, Lloyds, NatWest and Santander, providing long-term funding certainty to support its five-year growth strategy.
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Bromford Flagship and LiveWest have completed their merger, which is set to unlock £1.5bn in capacity between now and 2040.
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The Home Builders Federation and Homes for Scotland have published new guidance to help housebuilders comply with UK competition law following a Competition and Markets Authority investigation into information sharing.
The guidance, issued after the CMA accepted voluntary commitments from seven housebuilders, sets out competition law principles on information exchange alongside industry-specific advice, supported by a practical ‘Dos and Don’ts’ document for companies and staff.
Housing View 