Housebuilding hits 2026 low point amid downturn

Activity in the UK’s housebuilding sector has fallen at its fastest pace so far this year, according to new figures.

The S&P Global UK construction PMI showed a reading of 38.4 in June, marking a slight improvement on May’s six-year low of 38.2.

However, it was still the second fastest fall in output since the start of the COVID-19 pandemic.

Any reading above 50 separates growth from contraction.

The report said housebuilding and civil engineering remained under significant pressure.

However, it also showed easing cost pressures in June, while supply chain disruptions were also “notably less acute” and 38 per cent of construction firms said they expect an increase in business activity over the year ahead.

Tim Moore, economics director at S&P Global Market Intelligence, said: “New work decreased to the least marked extent since March, despite widespread reports of challenging market conditions. 

“Construction companies commented on headwinds from subdued housing sales, elevated interest rates and squeezed consumer finances, alongside cutbacks to business investment plans.”

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