Bellwether survey shows uptick in July
The S&P Global UK Construction purchasing managers’ index rose to 44.7 in July from 38.4 in June, the slowest rate of output contraction in four months.
The improvement still falls below the 50.0 no-change rate, as it has since January 2025, but raises hopes that fortunes in the sector could be turning.
Much slower rates of contraction were seen in all three sub-sectors in July, with housebuilding activity decreasing at the least marked pace since October 2025, at 41.8.
Tim Moore, Economics Director at S&P Global Market Intelligence, said: “Survey respondents commented on signs of a turnaround in client demand and a revival in new tender opportunities in some cases, despite subdued underlying market conditions.
“This contributed to more upbeat business activity expectations for the year ahead, with confidence levels the highest since February.”
Help to Buy brings in over £1bn – HBF
Analysis by the Home Builders Federation (HBF) has revealed that the exchequer made a return of £1.24bn on the Help to Buy scheme loans, with the initiative assisting 387,278 households to purchase a new build home between 2013 and 2022.
By the end of March 2026 over two hundred thousand equity loans had been fully repaid, meaning that more than 55% of loan accounts are now closed.
The closed loan accounts had a value at origination of £11.98bn, but the repayment value was £13.22bn, an increase of £1.24bn against the amount loaned and representing a positive return on the investment of 10.4%.
Developer and supply chain updates
Persimmon increased first-half completions 13% to 5,189 homes, while underlying operating profit rose 10% to £189.1m and housing revenue increased 13% to £1.48bn, although its underlying housing operating margin eased to 12.8%.
The housebuilder said private sales remained ahead of last year overall, but open-market demand had softened in recent weeks, with the reservation rate excluding bulk sales falling to 0.59 from 0.61.
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Ibstock reported a £27m pre-tax loss for the six months to 30 June 2026, compared with an £8m profit a year earlier, as turnover fell to £164m amid weaker demand and reduced production.
The brick manufacturer cut output by 20 million units and incurred £24.7m of impairment charges on mothballed facilities, despite implementing two price increases during the period.