If you are investment planning in Cheshire or Oswestry, the housebuilding sector is reporting increased optimism for the year ahead.
Barclays’ latest Businesses Prosperity Index surveyed the housebuilding sector and supply chains, and found that 83% of respondents felt confident about 2026. Analysis identified continuing demand for new-build homes and a rise in planned investment.
The study found that the housebuilding industry is looking to raise investment by 38% over the next 12 months, focusing primarily on marketing, equipment and pay. The data indicates that around 60% of the youngest “Generation Z” homeowners occupy new builds compared with 25% of the population as a whole. As such, housebuilders are looking to the future, increasingly investing in upskilling and new construction methods.
A key area of interest is the Government’s future homes standard, and in particular, areas such as low-carbon heating, meeting ventilation standards and applying the new home energy model and meeting ventilation standards. It is hoped investments in artificial intelligence (AI) will help drive forward planning, design, energy efficient materials and the software used for business management. The survey found that around 30% of the industry is upgrading training, equipment and tech to support compliance.
There are still obstacles to building. These include unfavourable mortgage deals, high construction costs, inflation and wider pressures on SME housebuilders. Barclays Corporate Banking Head of Real Estate, Jason Constable, said that despite these challenges, the industry is innovating across the board with businesses investing in tech and skills to improve productivity as it aligns with the Government’s vision for the homes of the future.
