Developer Confidence Plunges as 57% Pull Back from New Projects
By Benjamin Owoicho Adah | July 28, 2026
In Q2 2026, UK property developer confidence plunged as 57% pulled back from new projects. High build and labour costs, planning delays, and economic uncertainty drove this decline. Meanwhile, 83% plan to use specialist finance, like bridging and development loans, to navigate these difficult market conditions. [1, 2]
Key Market Findings
- 57% pull back: Developers delaying or stopping new schemes.
- 23% positive outlook: Expecting market conditions to improve this year.
- 97% facing hurdles: Obstacles persist across the sector. [1, 2, 3, 4]
Top Development Barriers
- High costs: Build and labour expenses lead at 35%.
- Planning issues: Delays and uncertainty account for 29%.
- Economic climate: General instability stops project commitments.
Rise in Specialist Finance
- 83% total usage: Up from 72% in Q1.
- 44% bridging finance: Intentions rose from 40%.
- 29% development finance: Demand increased from 24%. [1]
Jonathan Samuels, CEO of Octane Capital, said: "Build costs remain stubbornly high, planning delays continue to frustrate development activity, and wider economic uncertainty is making it increasingly difficult for developers to commit to new projects with confidence." However, he added: "Whilst sentiment has undoubtedly weakened, opportunities still exist for those able to move decisively."