Florence Eshalomi appeals to Matthew Pennycook
The cross-party Housing, Communities and Local Government (HCLG) Committee has written to Housing Minister Matthew Pennycook to warn that increasing the supply of new homes is crucial, but they must be of good quality and fit for the future.
In an letter to Pennycook, HCLG Chair Florence Eshalomi makes a series of recommendations to help ensure the quality of new homes, improve the routes for redress for home buyers, and deliver an increase in accessible homes.
The correspondence also expresses concern that new homes are being built that do not sufficiently mitigate the risks of homes overheating. The committee’s letter recommends the government’s planned technical review in this area undertakes a rigorous stress-test to check whether existing building regulations are sufficient for the higher temperatures the UK could be exposed to as a result of climate change.
Boosting housing supply will play an important role in improving housing conditions overall. But the government needs to go further to ensure that new homes are of good quality and reflect the changing needs of our population, including homes that are adaptable and accessible, and of our climate.
Florence Eshalomi, Chair, the Housing, Communities and Local Government Committee
Contractors restrict fixed price periods amid build cost volatility
Southern Construction Framework’s latest market intelligence report for Q1 2026 has revealed that pricing and supply conditions are forcing contractors to check material prices and availability every week.
The report, based on a survey of over 150 subcontractors, said tender workload rose by 2.6% from January to March, but starts on site remain volatile as cost pressure and supply chain caution take effect.
The report also forecast that 2027 would see “increasing workload alongside sustained cost pressure and constrained supply chain capacity, reinforcing the importance of early engagement and proactive risk management”.
Homes England reports highest completions in six years
Government agency Homes England has built 40,200 homes in 2025/26 – a 9% rise on the previous year and 97% towards the target of 41,500.
The number of new housing completions is the highest in six years, and has facilitated the start of construction for an additional 42,400 homes.
The government’s housing and regeneration agency has also unlocked land capable of delivering 61,700 homes; a 115% achievement against the government target of 53,700.
These figures tell the story of the positive impact of collaboration – when organisations with a common aim, from communities to town halls to central government, work together to deliver the new homes and thriving places that people want and need across the country.
Pat Ritchie CBE, Chair, Homes England
Developer and supply chain updates
Crest Nicholson has delayed publication of its half-year results as it continues discussions with lenders over a temporary covenant relaxation linked to lower expected profitability. The housebuilder said the talks followed weaker trading conditions and the impact of the Middle East conflict, which it previously said would reduce annual housing volumes to 1,400–1,500 homes from earlier guidance of 1,550–1,700.
The company’s results for the six months to April 30 2026 will now be released on July 16. Crest said the delay would provide time to complete the covenant reset process and allow auditors to finalise their review procedures.
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Willmott Dixon has launched a new development arm bringing together its regeneration, investment and development expertise under a single national platform. Willmott Dixon Developments will be led by David Atkinson, Director of Development and Investment, and Chris Wheeler, National Head of Land and Development, supported by regional teams across England and Wales.
The business will work with councils on regeneration schemes, including site planning, procurement and delivery strategies, while using Willmott Dixon capital to support residential developments and align partner interests. It will also focus on purpose-built student accommodation and longer-term public-private partnership models for complex infrastructure and social projects.
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Forterra is introducing pricing surcharges on concrete products and bricks from next month as it responds to rising energy and transport costs linked to the Middle East crisis. The building materials manufacturer said inflationary pressures had been driven by higher diesel, logistics and natural gas prices, although its forward gas purchasing strategy has protected around 80% of remaining annual requirements from recent price rises.
The company has also delayed some production from April into the second half of the year to manage gas costs, increasing the expected weighting of full-year earnings towards later months. Forterra said brick pricing surcharges will take effect from June 1 2026, alongside existing surcharges on concrete products.
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Ibstock said UK residential construction markets remained challenging in the early part of the year, with domestic brick market volumes down 11% in the first quarter and weak demand for concrete products linked to private housing and repair markets. Group revenues fell about 10% on a like-for-like basis in the first four months of the year, although trading improved in April and May, including a high single-digit rise in brick volumes in April.
The manufacturer warned that uncertainty surrounding the Middle East conflict and rising energy and fuel costs could continue to weigh on consumer confidence and the wider economy in the near term. However, Ibstock said it expects some improvement in the second half of the year and noted it has hedged more than 85% of its energy needs for the first three quarters of 2026, with around 80% coverage for the full year.
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