The number of new housebuilding businesses starting up in the UK has decreased by a third since the Help to Buy scheme ended. Data analysed by Connells Group from Companies House shows that 6,815 new housebuilding companies launched in the first seven months of 2026.
This represents a 3.5% reduction compared to the same period in the previous year and is 34% below the 10,387 new businesses recorded in 2022. The 2022 peak coincided with the final year of Help to Buy in England and a period of relatively low interest rates.
Since 2022, fewer new housebuilding businesses have entered the market each year. Existing housebuilders have also faced increased pressure, with the number of housebuilding companies being dissolved rising by 21% since 2022.
Higher interest rates, rising construction costs, and slower property sales are cited as factors deterring new developers and putting pressure on smaller firms. Aneisha Beveridge, research director at Connells Group, stated that the operating environment remains challenging for new housebuilders.