Housing targets at risk

An analysis of the UK development sector has revealed that the UK government’s ambitions for accelerating housebuilding in 2026 are at significant risk, despite renewed policy commitments and the introduction of planning reforms.

The Development Index 2026 – built from industry leaders’ insights across the UK’s top developers, housebuilders, real estate investment trusts and asset managers – highlights a combination of structural and emerging challenges that threaten delivery across the built environment.

Almost all industry leaders surveyed reported ‘low’ or ‘very low’ confidence in the UK development market entering 2026, citing weak market sentiment, slower decision-making and persistent economic uncertainty.

Developers warn that Gateway 2 legislation alone adds an average of 26 weeks to planning processes, even though the backlog is expected to improve this year. Local authority capacity constraints and the slow roll-out of the new National Planning Policy Framework also continue to restrict progress.

See the Development Index 2026 here.

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