Skip to content

June saw the UK housing market balancing cautious optimism with structural challenges. Government pledges of record social and affordable housing funding, a new National Housing Bank, and planning system reforms offer hope against long-term undersupply. However, planning permissions have hit record lows, Section 106 delays persist, and housebuilders face margin pressures.

Government policy boosts:

The Chancellor’s Spending Review unveiled a £39bn commitment for affordable and social housing over the next decade, the largest in 50 years, with an additional £10bn for financial investments via Homes England. This has been widely welcomed by the sector, with the National Housing Federation noting it will “kickstart a generational boost” in social home delivery.

The Government also launched a National Housing Bank under Homes England, aiming to unlock £53bn of private investment to deliver over 500,000 new homes while supporting the Affordable Homes Programme. Alongside, a new AI tool, Extract, was launched to digitise planning records in minutes, aiming to speed up the planning process.

The MHCLG also announced a streamlined planning appeals process, encouraging “submit once, submit right” to accelerate decisions, while the Construction Skills Mission Board launched initiatives to recruit 100,000 extra construction workers annually, supported by £625m in new skills funding.

Close-up of two businesspeople shaking hands, symbolizing agreement and partnership.

Market resilience despite affordability pressures

The housing market remained resilient, though affordability pressures persist:

  • Halifax reported a -0.4% monthly fall with annual growth slowing to 2.5%, while Nationwide saw a 0.5% rise, with annual growth at 3.5%.
  • The average property price is now £296,648 (Halifax) and £273,427 (Nationwide).
  • Rightmove’s June index reported a -0.3% dip in asking prices, reflecting sellers adjusting expectations amid competitive conditions.
  • ONS data for April showed a -2.7% monthly fall with annual prices up 3.5% to £265,000.

Affordability remains stretched, with first-time buyers now borrowing on 31-year mortgage terms to manage higher rates, and rural areas continue to outpace urban price growth.

Construction output and industry performance

The S&P Global UK Construction PMI reported a slowing decline in May (47.9), but housebuilding remained the weakest segment (45.1). ONS data showed construction output rose 0.9% in April, the third consecutive month of growth, driven by infrastructure and commercial sectors.

In the industry:

  • Crest Nicholson returned to profit (£9.4m pre-tax for H1), while Bellway reported strong spring demand with up to 8,700 completions expected this year.
  • Gleeson Homes issued a profit warning (15-20% below expectations) due to flat prices and rising build costs.
  • The Competition and Markets Authority extended its investigation into anti-competitive practices by seven major developers.
A smiling couple holds a house-shaped key, symbolizing their new home purchase.

Check out our services...

Civil Engineering Group

Our dedicated Civil Engineering and Infrastructure teams are trusted designers and deliverers of major developments including new towns, major urban extens...
View More

Cost & Commercial Group

Infrastructure/Abnormal/Site-Wide Cost Planning. We have vast experience in structuring, maintaining and managing budgets of hundreds of million pounds, en...
View More

Development Management Group

We are one of the UK's leading partners to blue chip developers, funders and land promoters. From securing planning consents for major house building schem...
View More

Land, Development and Communities Group

Our Land, Development and Communities Group (LDC) has built an enviable reputation across our industry as leading providers of a variety of services with t...
View More

Mechanical and Electrical Engineering Group

Our Mechanical and Electrical Engineering Group has a renowned team of award-winning, energy-centric building services specialists. We are a creative te...
View More

Our work on the Development Cycle

Our services are available for specific stages of a project or for a projects' entire lifecycle – it all comes down to what you need and when. We are adapt...
View More

Structural Engineering Group

Our Structural Engineering Group can trace its origins back to its formation in 1984. From the outset it quickly gained a reputation for producing practica...
View More

More News

Unlocking Potential: The Brookbanks Approach to Smarter Development

August 21, 2025

At Brookbanks, we go beyond delivering technical, commercial, and project services - we unlock the full potential of every development. Our mission is to create tangible value by combining deep expertise, innovative thinking, and a unified approach that makes every stage of the development process smoother, smarter, and more efficient.

Read More

Webinar: Value Enhancement on Civil Engineering Schemes

August 20, 2025

Richard Moorcroft, Group Operations and Engineering Director, and Siobhan Murphy, Technical Director, explored the challenges in unlocking long-term value across the lifecycle of a complex civil engineering scheme, sharing the lessons and tips they felt could support future schemes.

Read More

Post-Contract Administration

August 18, 2025

Delivering value after the contract is signed: The Cost and Commercial team at Brookbanks cover a wide range of services, from cost plans to expert reports. One area in which we have a strong breadth of expertise is in post-contract administration.

Read More