Construction output falls at slowest rate since January
The September Construction Purchasing Managers’ Index (PMI) rose to 46.1 from 44.3 in August, marking the slowest contraction in construction output since January, although the sector remained below the 50-point threshold indicating growth.
The residential sector remained the weakest performer, recording an index of 40.7, while 31% of construction firms expected activity to increase over the next 12 months compared with 21% anticipating a decline.
Conservatives pledge to cut housebuilding costs by £50,000
Shadow chancellor Andrew Griffith has pledged to cut the cost of building a new home by up to £50,000 by scrapping the Future Homes Standard and other development and planning costs, as part of what he described as the Conservatives’ “most ambitious deregulation project in a generation”.
The proposals also include scrapping the Building Safety Levy and reducing the regulatory burden on developers, with the Conservatives arguing that these measures would make more schemes financially viable and help accelerate housing delivery.
The party said it would also reform the planning system to reduce delays and costs, although the proposals would require further detail on how the savings would be achieved and how changes to building standards would affect housing quality and energy efficiency.
Local authorities show reliance on PPAs
The Home Builders Federation (HBF) and Paragon Bank have found that local authorities received an average of almost £600,000 each in Planning Performance Agreement (PPA) fees between 2022 and 2025, with councils collecting around £200m in total, despite continuing to struggle to meet planning deadlines.
The research, based on Freedom of Information requests, raises questions over whether the additional fees paid by developers are delivering faster planning decisions.