The latest Barclays Business Prosperity Index report1 reveals that despite affordability pressures, regulatory challenges and financial caution, four in five businesses (83 per cent) operating in housebuilding and its supply chains remain confident about their outlook for the year ahead. Barclays’ anonymised client data from around 70,000 UK businesses, combined with research from 500 industry leaders1 and 2000 consumers2, also shows strengthening activity at the start of the development pipeline, sustained buyer demand for new-build homes and a major uplift in planned investment. Key findings from the Barclays Business Prosperity Index include: Sector investment and innovation gathers pace Talent, skills and AI are all becoming major investment focus areas. Four in 10 (40 per cent) businesses with skills shortages are investing in new construction methods to reduce manual labour, alongside developing early career schemes (39 per cent), and focusing on training and upskilling (36 per cent). Meanwhile the average intended AI investment of £441,281 reflects growing demand for AI assisted design and planning (37 per cent), renewable and energy efficient materials (36 per cent), business management automation software (35 per cent) and building information modelling (29 per cent). Momentum is particularly strong in Electronics, where intended AI spend exceeds £500,000, while trades such as Plumbing (£380,000), Carpentry (£347,320) and Painting & Decorating (£328,371) signal smaller, though material allocations. Future Homes Standard: A top priority but confidence in readiness lags Nearly all firms (98 per cent) say aligning with the Government’s Future Homes Standard is a priority for the next 12 months, yet 82 per cent express concern about their readiness. Key areas where support is most needed include installing low carbon heating systems (21 per cent), applying the new Home Energy Model (20 per cent) and meeting updated ventilation standards (18 per cent).  Despite this, businesses are taking proactive steps, with 30 per cent investing in specialist equipment, training and technology to boost compliance. Strong Gen Z new-build appetite despite affordability pressures A quarter of homeowners (25 per cent) report they live in a new-build property. This rises amongst first-time buyers, with nearly half (47 per cent) of those who bought their first home in the past year opting for a new‑build property. New properties are most popular amongst Gen Z (61 per cent of homeowners) with desirable location named as the top driver of purchases (28 per cent). A fifth (20 per cent) cited favourable mortgage terms, such as higher loan-to-value ratio, and 17 per cent also reported energy efficiency as a major reason for buying new. This comes as young people report improving, but significant affordability challenges, as 61 per cent of Gen Z hoping to buy a home in the next 12 months said that mortgage rates have a bigger impact on affordability than house prices themselves. Despite strong buyer demand, there are still barriers to building. A quarter (25 per cent) of housebuilders report high construction costs as a major barrier, followed by rising inflation, cost of raw materials and meeting the requirements of the Future Homes Standard (all 19 per cent). Location, location, location Over the next 12 months, new-build property developers expect that consumers’ desire for customisation options, such as layout and finishes, to have the greatest impact on their approach (31 per cent), followed by expectations for upgraded digital infrastructure including high speed broadband (27 per cent). However, consumers report slightly different priorities. When surveyed about which features most influence their choice of property, the top factor was access to gardens or communal green spaces (42 per cent), followed by proximity to transport hubs (31 per cent) and proximity to parks or countryside (30 per cent). Just 17 per cent named digital infrastructure as a key influence, and just 11 per cent cited customisation. Jason Constable, Head of Real Estate, Barclays Corporate Banking, said: “The level of innovation we’re seeing across the industry from larger developers to specialist trades is encouraging, with businesses investing in technology, skills and modern construction methods to boost productivity. “These innovations, combined with stronger consumer demand for new-builds, present a significant opportunity for housebuilders. While affordability and planning delays still pose challenges, the underlying strength of demand points to clear potential for growth as market conditions stabilise.” John Ainsworth, Head of Real Estate, Barclays Business Banking, added: “Activity is generally subdued among SME housebuilders, with nearly three in 10 expecting no increase in output in the year ahead. Yet SMEs are working hard to overcome skills shortages and regulatory alignment, with their resilience coming through strongly as they show confidence in their future success. “If the industry is to hit the Government’s target and build the much-needed homes of the future, it’s vital we continue to support the scaleup of smaller regional players. At Barclays we are committed to providing the external finance needed to scale via our Business Prosperity Fund.” The Barclays Business Prosperity Fund is available to new and existing Business Banking and Corporate Banking clients across the UK to apply for lending and refinancing on existing projects. Terms and conditions apply. Businesses can read the full Barclays Business Prosperity Index Housebuilding report and find out more about the Business Prosperity Fund at home.barclays/businessprosperity. Building, Design & Construction Magazine | The Choice of Industry Professionals

Planning approvals for housing fell for a fourth consecutive year in 2025 to their lowest level since 2019, according to construction analysts Barbour ABI. The figures sharpen the challenge for housing secretary Steve Reed, whose ‘Build, Baby, Build’ drive and the Government’s pledge to deliver 1.5 million homes is being tested by a weakening housing pipeline. Residential planning approval value ended 2025 at £35.5bn, down 13% on 2021 and 25% below 2019, even though the wider construction market is up around 20% versus pre-COVID. Fewer approvals today mean fewer sites starting in the months ahead, slowing new supply, keeping upward pressure on prices and rents, and pushing the 1.5 million homes target further out of reach. “Last year, Steve Reed called on the industry to build, baby, build, but we’re yet to see any reaction,” said Ed Griffiths, head of business and client analysis at Barbour ABI. “The approvals pipeline for new homes has shrunk to its weakest since 2019, while money and momentum have shifted to energy infrastructure. “We don’t expect to see new housing spend to return to 2022 levels until 2027 and unless we see planning approvals recovering and contract awards broadening beyond a few large schemes, the 1.5 million homes target is looking increasingly impossible.” Contract awards, a key indicator of market health and future workload that signal the move from planning to delivery, remain broadly flat in housing. The value of residential awards edged up 4% in 2025 but has hovered around £22bn for three years. It’s a similar picture on applications. With no answer to current viability issues, residential remains stagnant increasing only 5% in overall application value with a 13% drop in the number of applications. By contrast, the rest of construction is performing. Overall planning approval value across all sectors rose 22% last year to £112bn, even as the number of approvals fell. Infrastructure is a particular highlight, as planning application value improved 45%, and planning approval value jumped 108% in 2025, powered by government-backed energy investment. Seven of the eight infrastructure projects approved in 2025 above £1bn were in the energy sector. Last year also saw growth across most regions, driven by high value transport and utility orders and urban regeneration in cities like Leeds and Manchester. Despite ongoing challenges like high costs and planning delays there are signs that private investors are committing to signing off on new contracts. But how quickly these can translate to activity on the ground in 2026 remains to be seen Building, Design & Construction Magazine | The Choice of Industry Professionals

Persimmon Homes West Wales and Pembrokeshire County Council have exchanged contracts for 21 new homes at the Ger y Môr development in Saundersfoot, which will be handed to the authority for social rent on completion to help ease local housing pressures. Located on Sandy Hill Road, the 21 properties will be supplemented by a further four homes reserved for local people, taking the number prioritised for the community to 25. The deal was marked on site by Persimmon representatives alongside the Council’s Cabinet Member for Housing, Cllr Michelle Bateman, and local county councillor, Cllr Chris Williams. The 72-home scheme will feature an equipped play area at its centre and a dedicated active travel link connecting the neighbourhood back to Sandy Hill Road. The design also includes sustainable drainage with bio-retention areas and rain gardens, green technologies such as solar panels and electric vehicle charging points, and ecological measures to mitigate impacts on dormouse habitats while preserving existing trees and hedgerows. The five-star accredited housebuilder currently has three, four and five-bedroom homes for sale at Ger y Môr from £310,000, with two-bedroom properties due to be released soon. Through its Community Champions programme, Persimmon donates £48,000 annually to good causes across Wales; recent local beneficiaries include Saundersfoot Cricket Club, Saundersfoot Rotary Club and the village’s New Year’s Day Swim. Stuart Phillips, Managing Director of Persimmon Homes West Wales, said: “Persimmon is determined to leave a positive community legacy where we build, and an integral element of our offering is the transfer of quality new homes to local housing association partners. “We are delighted to have exchanged contracts on this initial tranche of houses at our forthcoming Pembrokeshire site, Ger y Môr, and we hope this significant community contribution will help alleviate pressure on the local housing list. “We are pleased to partner with Pembrokeshire Council to deliver this increase in provision for local people as we make progress to bring this site to fruition.” Cllr Michelle Bateman, Pembrokeshire Council’s Cabinet Member for Housing, added: “We’re delighted to be going into partnership with Persimmon, taking on 21 new homes here at Ger y Môr, helping deliver secure homes for local people in Pembrokeshire. “The purchase of these properties as social housing is one of a range of affordable housing options we are offering to support families and individuals with diverse housing needs. “The purchases at Ger y Môr reflects the Council’s commitment to providing local affordable homes and revitalising our local communities.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Liverpool Waters has welcomed its newest residential development, Lighthaus, a 31-storey Build-to-Rent (BTR) tower in Princes Dock. Developed by Vermont, alongside Peel Waters, X1 Developments, and Starlight Investments, the 278-home project is set to welcome its first residents later this month. The development offers a mix of studio, one, two, and three-bedroom apartments, complemented by a sky lounge with panoramic views of Liverpool and the River Mersey, a fitness centre, co-working spaces, a residents’ lounge, and a 24-hour concierge service. Lighthaus has been designed with modern renting in mind, providing professionally managed, high-quality accommodation with convenient access to Liverpool’s iconic waterfront and city attractions. In addition to addressing the city’s demand for rental homes, the project has created employment and training opportunities for local residents throughout construction. Positions included permanent roles, apprenticeships, and work experience placements via the City of Liverpool Construction Academy, located within Liverpool Waters. The completion of Lighthaus marks another milestone in the ongoing Liverpool Waters masterplan, the largest urban regeneration initiative in the city’s history. Led by Peel Waters, the scheme is set to deliver thousands of new homes along with significant commercial and leisure space, reinforcing Liverpool’s position as a major northern growth centre. Princes Dock, where Lighthaus is located, now boasts over 1,000 completed homes, along with Liverpool Cruise Port, the Isle of Man Ferry terminal, and attractions such as the Wyld Sauna, the UK’s first public floating sauna. The area has also been selected as the site for the UK’s first floating Padel tennis courts, due to open in spring 2026. Speaking on the project’s completion, Chris Capes, Liverpool Waters Development Director at Peel Waters, said: “This achievement reflects our long-standing partnership between Peel Waters with X1 Developments and Vermont Construction, whose expertise has been instrumental in delivering exceptional results. Beyond creating a stunning new residential tower, this development has generated a fantastic pipeline of opportunities for local people throughout the build; from full-time employment to apprenticeships and placements for students at the onsite City of Liverpool Construction Academy. “Lighthaus demonstrates the strong appeal of Liverpool Waters as a destination for international investors, reinforcing the confidence in our vision and we’re only just getting started. With more residential developments, new public spaces, and vibrant amenities on the horizon, Liverpool Waters is shaping up to be one of the most exciting waterfront communities in the UK.” Building, Design & Construction Magazine | The Choice of Industry Professionals