Neil Leitch, managing director of Development Finance at Hampshire Trust Bank, warned at the time that “without stability and a functioning planning system the risk is that 2026 becomes another year where output falls well short of what the country needs,” adding that a shortage of planning capacity risked widening the gap between permissions granted and schemes actually starting on site.
Tim Moore, economics director at S&P Global Market Intelligence, said construction firms “experienced another solid reduction in output volumes, with a faster downturn in house building the main reason for a weaker overall performance during August.”
Moore added that subdued demand conditions, low client confidence and concerns tied to the Middle East conflict continued to weigh on workloads. He noted that total new business fell at its slowest pace in eleven months, with support from transport infrastructure work and activity in data centre and energy-related projects.
Business optimism among construction firms remained positive on balance, though sentiment cooled from July’s five-month high. Around 38% of the survey panel anticipate an expansion of output over the coming year, while 20% forecast a downturn.
That divide echoes findings from Barclays‘ Business Prosperity Index earlier in the year, which found 83% of businesses linked to housebuilding and its supply chains remained optimistic about the following twelve months despite affordability constraints, regulatory demands and a cautious funding environment.