UK housebuilding falls at sharpest pace since 2020 Covid lockdown

An S&P Global survey showed the housebuilding subindex fell to 33.5 in December, its weakest since early 2020, while the overall construction PMI was 40.1, indicating continued contraction.

UK housebuilding activity weakened notably at the end of 2025, according to an S&P Global construction survey. The housing subindex fell to 33.5 in December, the lowest reading in more than five and a half years. The overall construction PMI was 40.1, below the 50 level that separates expansion from contraction. The article reports the government’s pledge to build 1.5 million homes over five years is on track to fall well short. Key facts: - S&P Global's overall construction PMI rose to 40.1 in December from 39.4 in November; readings below 50 indicate contraction. - The housebuilding subindex dropped to 33.5 from 35.4, its weakest reading in over 5½ years. - S&P cited a sluggish pipeline of new work, weak demand and low confidence as factors weighing on housebuilding at the end of 2025. - The government has pledged 1.5 million homes over five years and has loosened planning rules, while high interest rates and a subdued housing market have hindered progress. - Other survey items showed some moderation in civil engineering's downturn, stronger expectations for future activity, cooler input price inflation, and a slower pace of job losses. Summary: The survey indicates housebuilding remains in marked contraction and the weaker activity reported is likely to make the government's housing pledge harder to meet. Undetermined at this time.