Private sector housebuilding drags down overall output
Latest data from the office for National Statistics has revealed that total construction output shrank by -2.1% in the fourth quarter of 2025.
Private sector housebuilding activity fell by -3.6% over the period, with monthly construction output falling slightly by -0.5% in December compared to the previous month.
However, 2025 as a whole saw growth for the fifth consecutive year, with output rising by 1.8% when compared with 2024.
Affordable Homes Programme set to open
Homes England has confirmed that the Social and Affordable Homes Programme 2026-2036 will open for bidding on 24 February.
The Programme provides grand funding to support the capital costs of developing affordable housing in England, outside London.
Homes England has at least £27.3 billion of government funding — including £1.2 billion in bridge funding announced in March 2025 — to deliver new social and affordable homes outside of London.
We will work closely with a diverse range of partners — both existing and those we haven’t previously worked with — to maximise the impact of this funding.
Homes England
Developer and supply chain updates
Bellway reported a robust first-half performance, with housing completions up 2.7% to 4,702 homes in the six months to January 31 2026 and average selling prices rising to around £322,000. The housebuilder said it remains on track to deliver full-year volume guidance, supported by a strong order book, despite subdued trading conditions through the autumn amid Budget uncertainty.
Private reservation rates softened over the period, with sales per outlet per week including bulk deals easing to 0.47 from 0.51 a year earlier, although rates excluding bulk sales edged slightly higher. Bellway said it has a healthy pipeline of bulk sale opportunities and expects stronger conversion in the second half, while trading from an average of 244 outlets broadly in line with expectations.
–
Barratt Redrow delivered 7,444 home completions in the six months to December 28 2025, up 4.7% year on year, but saw adjusted pre-tax profit fall -13.6% to £199.9m, with margins at 8.0%. The group said the integration of Redrow is progressing well, against a backdrop of subdued market conditions.
Underlying net private reservation rates edged up to 0.55, although the overall rate eased to 0.57 from 0.59 due to fewer private rental and multi-unit sales. Chief executive David Thomas said the enlarged group is focused on disciplined execution as integration nears completion, with an emphasis on efficiency, margin progression and long-term returns.
–
MJ Gleeson reported a sharp fall in half-year profit, with pre-tax profit down -53% to £1.7m in the six months to December 31 2025, despite higher output. Group revenue rose 9.6% to £173.1m as completions increased to 848 homes, while operating profit fell -17.6% to £4.2m.
The group said it has undertaken further restructuring under its Project Transform programme, completing an operational overhaul of Gleeson Homes in January. This included the removal of certain roles and a reorganisation of its Greater Manchester and Merseyside region as it seeks to improve performance.
–
Persimmon Homes has entered into a partnership with Ecofill following a successful trial of its aggregate replacement technology across Persimmon sites. The agreement will see soils and clays generated on site reused rather than sent to landfill, reducing reliance on imported aggregates.
Ecofill’s process uses specialist on-site machinery and binder mixes to convert surplus material into certified construction products suitable for uses such as roads, retaining walls and embankments. Persimmon said the partnership supports more sustainable construction practices by cutting waste and transport impacts.
–
Jennie Daly has been appointed chair of the Future Homes Hub, taking over from David Thomas on June 10. Thomas has held the role since 2022, when the Hub was established to support the transition to zero carbon housebuilding.
Daly, who is chief executive of Taylor Wimpey and was awarded a CBE in the 2024 King’s Birthday Honours, brings experience across both the public and private sectors. The Future Homes Hub has spent the past three years convening industry-led implementation boards on issues including the Future Homes Standard, biodiversity net gain and embodied carbon.
Housing View 