Pennycook confirms programme in Committee session
Housing Minister Matthew Pennycook has confirmed that the Government will set out the final locations of its new towns programme by the end of this year.
Speaking at a House of Lords Built Environment Committee, Pennycook stated that the Government were “committed to the manifesto in respect to the new towns programme” and reviewing responses to the consultation on a draft version which ended in May.
The Government had previously reduced the number of new town locations from 12 to seven, with at least 10,000 new homes per town to be delivered.
Nine in ten planning departments understaffed
Research by the Home Builders Federation (HBF) and Paragon Bank has revealed that nine in ten local authority planning departments across England and Wales are understaffed, delaying planning decisions and threatening the Government’s target of 1.5 million new homes.
The Planning on Empty report, based on a Freedom of Information survey, found that planning departments are working at an average of just 80% of the staffing levels they say they need.
The Government has committed to recruiting 1,400 additional planners during this Parliament; however, councils now require an estimated 2,660 additional planners to reach full staffing levels.
Affordable homes completions fall
The latest quarterly survey of registered providers by the Regulator of Social Housing has revealed that affordable home ownership completions in April to June 2026 totalled 3,240; a -38% fall on the previous quarter.
This represents the lowest quarterly total since 2020.
The survey also found that spend on developing new homes fell from £3.4bn to £3.1bn quarter-on-quarter; however, total annual forecast spend has increased from £15.1bn to £16bn since March, as the sector looks to deliver under the Social and Affordable Homes Programme.
Section 106 guidance published
The Government has published new guidance on Section 106 affordable housing engagement, which states a shared commitment by housebuilders, local authorities and housing associations to work together to ensure early engagement and transparency with the process.
The guidance was developed by the Home Builders Federation, the National Housing Federation, the Chartered Institute of Housing and the Local Government Association with their members.
Katie Lam appointed shadow Housing Secretary
Katie Lam has become Shadow Housing Secretary following James Cleverly’s departure from the role to pursue the Conservative nomination for Mayor of London.
Lam, MP for Weald of Kent since July 2024, previously served as a Shadow Home Office Minister and Opposition Assistant Whip, and will focus on housing delivery, local communities and local government.
Developer and supply chain updates
Crest Nicholson has cut its FY2026 completions forecast to 1,350–1,400 homes and now expects an EBIT loss of around -£10m, reflecting weaker open-market demand and continued pricing pressure.
Its net open-market sales rate fell to 0.35 over the past six weeks, while discussions with lenders over covenant amendments have also taken longer than expected.
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Cala Group has reported a pre-tax loss for the year to 31 December 2025.
The housebuilder reported a loss of -£16.3m, compared to a £19.8m profit the previous year. Its operating profit fell from £56.4m to £22.5m.
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Builders’ merchant sales fell -1.2% by value in Q2 2026, with volumes down -6.6% despite prices rising 5.8%, highlighting weak underlying construction demand.
Housebuilding remains a major drag, with Heavy Building Materials sales down -2.6%, while June volume sales fell -10%; overall construction output was also -2.0% below Q2 2025.
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Michelmersh’s brick dispatches fell a further -9% in H1 2026, leaving volumes more than 25% below their 2022 peak as weak construction demand continues.
The downturn has forced factory rationalisation, including the full closure of its Charnwood plant with 30 job losses, and Chief Executive Officer Ryan Mahoney warned that a prolonged period of subdued construction activity is likely.