"A recent Knight Frank survey of over 60 homebuilders revealed that almost half expect housing starts to decline through the last quarter of 2025, with uncertainty around taxes and levies delaying decisions to build homes. Developers cited unclear government policy, long lead times, and high inflation as key reasons for slowing new builds. James Barton, head of Knight Frank's London land agency, said: "Developers are waiting for clarity on costs and fiscal measures before committing to projects, or we risk seeing further delays into 2026.""
"Kit Malthouse, who served as Housing Minister under Theresa May, told the FMB podcast that the current government is likely to fall far short of its housing targets due to persistent capacity and market issues. He pointed to brick and breeze block shortages, a collapse in the small building sector after 2008, and ongoing planning permission delays. "Until interest rates fall and capacity expands, we're going to have a problem," he said, emphasising that slowing the pace to build a house is not a question of policy ambition but practical constrai"
Almost half of surveyed homebuilders expect housing starts to decline in the final quarter of 2025, citing uncertainty around taxes and levies as a key cause. Developers reported unclear government policy, long lead times, and high inflation delaying decisions to begin projects. Many builders are waiting for clarity on costs and fiscal measures before committing, risking delays into 2026. Capacity constraints, brick and breeze block shortages, a diminished small-builder sector since 2008, and planning permission delays are further limiting output. Until interest rates fall and capacity expands, housebuilding pace will remain constrained, making the 1.5 million homes target unlikely to be met.
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