Housing Watch: The housing industry needs action, not good intentions – Mortgage Strategy
As we reach the halfway point of 2026, it’s time for a reality check.
Speak to almost any developer and you’ll hear the same story: activity has slowed dramatically, confidence is fragile and the market feels quieter than many can remember.
Over the past month, housebuilders have been forced into multiple downward reforecasts, all pointing in the same direction: fewer homes being built and sold, and growing uncertainty about what comes next.
There are practical steps the industry can take today
Combined, the warning signs are becoming impossible to ignore. The sector isn’t just experiencing a slowdown, it’s facing a period of sustained contraction.
The Home Builders Federation highlighted that increased taxes, regulation and inflation had added around £70,000 to the cost of building every new home: a staggering figure.
Having already watched SMEs disappear from the market, and now seeing some larger developers holding on by a thread, it’s clear that action is needed — and fast.
Regardless, there have been some welcome announcements across the board. Scotland has re-introduced the First Homes Fund, offering interest-free loans of up to £10,000 to support first-time buyers.
However, we need to be honest about its likely impact. The previous First Homes Fund offered up to £25,000, making the new version feel like a drop in the ocean. In many cases, £10,000 won’t even represent a 5% contribution towards a property purchase.
If we’re serious about solving the housing crisis, we cannot wait for conditions to improve
Likewise, the government and Homes England have announced the National Housing Bank, with £16bn of capacity to support developers. The intentions are right, but my concern is timing. From purchasing land to securing planning permission and completing homes, the average development cycle can be five years.
By the time these initiatives are fully operational, there’s a real danger they could be too little, too late. If we want to get anywhere close to delivering the housing numbers this country desperately needs, intervention must happen now, not years down the line.
Digital solutions
While much of the focus is rightly on government support, there are practical steps the industry can take today to better support developers and homebuyers.
MAB recently carried out research with nine developers, which revealed an increasing openness to digital solutions that enhance the customer journey — while maintaining that all-important relationship building.
We must support housebuilders, educate customers, embrace new ways of communicating and start making meaningful changes today
One of the biggest opportunities identified was appointment booking. In many cases, the process remains the site team receiving an email saying, ‘Can you call this customer?’ Something as simple as open-diary booking systems can improve efficiency immediately, reducing the loss of potential customers between referral and contact.
The research also highlighted a perception among some developers that digitally generated leads are lower quality, with which I disagree. Every prospective buyer wants to reach the same destination, and our job is to walk alongside customers for as long as it takes to get them there.
Building confidence, not barriers
Many site teams have become so concerned about accidentally giving financial advice to customers that they actively avoid conversations altogether.
What they need is as simple as top-level understanding of the various pain points and myths that customers experience, so they can signpost them to an adviser accordingly.
We must ensure that our site teams understand what’s possible in today’s market
With many prospective buyers using TikTok and Instagram as key sources of homebuying information, it’s important that we meet them where they are — delivering relevant, accessible content through the channels they engage with most.
They also want to hear from people like themselves, with authentic homebuying stories and credible, practical advice that helps them to build confidence and makes homeownership feel more achievable.
Many customers still believe bankruptcy, a low deposit or unusual circumstances automatically exclude them from getting a mortgage. However, there are more options available than many people realise for those with smaller deposits and more complex circumstances. We must ensure that our site teams understand what’s possible in today’s market, so customers aren’t turned away due to misconceptions.
The market is challenging, and nobody should pretend otherwise. But positivity still matters. Education matters. Engagement matters. Technology matters.
By the time these initiatives are fully operational, there’s a real danger they could be too little, too late
Most importantly, action matters. If we’re serious about solving the housing crisis, we cannot wait for conditions to improve.
We must support housebuilders, educate customers, embrace new ways of communicating and start making meaningful changes today.
Felicity Barnett is new-build and affordable housing partnerships manager at Mortgage Advice Bureau
This article featured in the July/August 2026 edition of Mortgage Strategy.
If you would like to subscribe to the monthly print or digital magazine, please click here.
