Mortgage lender warns of Iran war impact
Nationwide published its house price index this week, revealing an improvement in annual house price growth from 1.0% in February to 2.2% in March.
The monthly change registered at 0.9%, with the average property now valued at £277,186.
However, the mortgage lender stated that “the sharp rise in global energy prices in response to developments in the Middle East represents a significant shock to the global economy, clouding the outlook.
“In the near term, UK economic growth is likely to be slower and inflation higher than previously expected, although ultimately the impact will depend on the duration of the shock as well as the policy response.”
Just two of the 13 regions saw annual price declines (Outer South East at -0.7%, and East Anglia at -0.4%).
However, Northern Ireland continued to outpace the rest of the UK, with prices increasing by 9.5% over the year.
Meanwhile, Zoopla has reported weakened buyer demand as early-stage movers put the brakes on.
Average mortgage rates have increased by around 0.4% in March, says the property website, but annual house price inflation remains stable at 1.3%.
The average house price in February was £270,500, up from £270,300 in January.
CLC warns of rising fuel costs
The Construction Leadership Council (CLC) have sounded the alarm over rising energy and fuel costs, highlighting a knock-on effect on build cost.
In their latest Material Supply Chain Group statement, the CLC said that demand remains low, short-term availability remains stable, but that “price is unpredictable, and the workarounds are resulting in longer delivery times”.
The main challenge, however, is the rapid rise in energy prices and their immediate impact on material costs, particularly for products with energy-intensive manufacturing processes or derived from oil-based raw materials.
At the start of the supply chain, many of these manufacturers are facing significant cost increases, although some will be protected by energy price hedges in the medium term.
Construction Leadership Council
Scotland’s housing delivery could become a “national catastrophe”
Homes for Scotland (HFS), the national body representing housebuilders in the country, has responded to the latest Scottish Government housing statistics, warning that “today’s housing emergency risks becoming a national catastrophe”.
The figures, which revealed continued declines in both starts and completions, showed that there were 17,336 homes completed and 14,999 homes started across all tenures in 2025, representing annual declines of -13% and -6% respectively.
Jane Wood, Chief Executive of HFS, said: “Today’s statistics should be of major concern to everyone and directly challenge the Scottish Government’s ambition to increase all-tenure housing delivery 10% year-on-year. Without urgent action from all parties in May’s election, today’s housing emergency risks becoming a national catastrophe.
“Whilst the last six months of 2025 saw positive increases in approvals for the Affordable Housing Supply Programme, this is against an incredibly low bar in the context of one of the most challenging years in housing delivery where the affordable housing budget was cut by over 26% and saw over 1,800 affordable homes stalled.”
Half of builders experience staff shortages and BNG confusion
The latest State of Trade survey from the Federation of Master Builders (FMB) has found that workloads remain strong; however, nearly half of firms report job delays linked to a lack of skilled tradespeople, and concerns around costs and recent policy changes are shaping expectations for the year ahead.
Commissioned by the FMB and the Chartered Institute of Building, the survey covers the period from July to December 2025 and is based on 493 responses from FMB members.
Meanwhile, a new report from the Home Builders Federation (HBF) has found that issues with biodiversity net gain (BNG) rules are slowing home delivery, with 84% continuing to find the legislation challenging.
The Biodiversity Net Gain Sentiment Survey 2026 also found that BNG rules were “having a clear and growing impact on development viability and housing delivery, particularly on smaller sites”.
Local authority capacity remains a significant challenge for the delivery of BNG, as delays in reviewing biodiversity assessments continue to affect a large proportion of home builders. 80% of respondents in 2026 reported planning delays due to BNG.
National Housing Bank launches
Homes England launched the National Housing Bank this week, working with developers, investors and registered providers to deploy up to £16bn to aid the delivery of more than 500,000 homes.
The government agency also said that the National Housing Bank would unlock £53bn of private investment over the next decade.
Launching England’s first ever National Housing Bank underpins a new way of doing things as we accelerate housebuilding at scale and tackle the housing crisis head on.
Steve Reed, Housing Secretary
Meanwhile, a new infrastructure fund to unlock stalled housing sites has been announced by the government.
The Growth and Housing Accelerator Fund, totalling around £165m, will focus on sites where progress has stalled due to a lack of transport infrastructure cash, and focus on locations on or near to motorways and A-roads across England.
Developer and supply chain updates
Berkeley Group has suspended new land acquisitions and will scale back work in progress investment as it responds to geopolitical uncertainty, rising costs and increased taxation. The housebuilder said the impact of the Middle East conflict and weakening economic outlook has reduced confidence in a near-term market recovery.
Berkeley said it will instead focus on its existing landbank and only pursue new opportunities through joint ventures, citing an inability to achieve required returns under current conditions. The group added it will align build activity with current sales levels and prioritise long-term value over short-term profit targets.
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Bellway has unveiled a brand refresh to mark its 80th anniversary and a decade as a five-star housebuilder, introducing a more flexible, digital-first identity aimed at a broader customer base. The update includes new digital tools and enhanced online journeys designed to simplify the buying process and improve customer engagement.
As part of the overhaul, Bellway will phase out its Ashberry Homes brand over the next three to four years, integrating sites and staff into the core business. The rollout will begin with digital assets immediately, followed by updated signage and offices from August 2026.
Housing View 