Housebuilding stays the weakest part of UK construction in September as builders' optimism drops to its lowest since May

The S&P Global UK Construction PMI for September, released on 6 October, showed the overall downturn at its least marked since January, but housebuilding remained the worst-performing sector, with firms blaming higher borrowing costs and weak market conditions. Softer order books and concerns about rising rates pushed business optimism to its lowest level since May, even though more firms still expect activity to rise over the next year than fall. For buyers, fewer new homes starting now means a thinner new-build pipeline into 2027, at a time when the government's Your First Home equity-loan scheme is set to add demand. For sellers of existing homes, slower new-build supply removes some competition, but it does not offset the pressure that 6% average fixed rates are putting on what buyers can borrow.