The latest UK Private Housebuilding 2025-2029 offers a comprehensive analysis of the market’s size and performance over recent years, along with a five-year outlook.
Regional and Market Performance Analysis
The report provides a regional analysis of key performance indicators driving the private residential construction market, including completions and starts, new orders, as well as a top housebuilder and pipeline analysis.
Current Market Performance and Challenges
In 2024, private housing output in the UK experienced a modest decline of 1%, totalling £45.6 million. The sector has faced significant challenges in recent years, including decreased buyer demand due to higher interest rates, cost inflation, labour shortages, regulatory burdens, and planning delays that hinder the delivery of homes.
Decline in Energy Performance Certificates
In the year ending 31 March 2025, the number of Energy Performance Certificates (EPCs) granted for new dwellings declined by 10% to 210,617. EPCs are a good indicator of the number of new homes because every property is required to obtain one within a few days of completion.
Planning Approvals and Pipeline Trends
Since 2021, the number of new home building projects (valued over £100,000) receiving planning approvals has been on a downward trajectory, with a notable 14.9% decrease in 2024 alone. The first half of 2025 shows approval rates comparable to the same period last year, indicating ongoing challenges in the planning system. It is noteworthy that major housebuilders may be refraining from submitting new applications, as they currently hold sufficient plots with existing permissions for the foreseeable future.
While the private housebuilding sector continues to face challenges, we anticipate a gradual recovery in the coming years. Medium-term growth is expected to be fuelled by government commitments to housing investment, improving economic conditions, enhanced affordability, planning reforms, and a long-standing structural undersupply of housing.
UK Private Housebuilding Market Report by Barbour ABI
Nevertheless, several issues may hamper the delivery of new homes in the short term, including skill shortages, demand constraints, and additional direct and indirect costs faced by housebuilders. In response to these ongoing challenges, we anticipate a heightened focus on efficiency within the sector, leading to innovations in construction processes.
Click the button below to view this report on our store website where you can see an exhaustive list of the table of contents, commentary, and more.
