This week’s briefing spotlights a sharp fall in planning activity, the growing commercial impact of embodied carbon and CBAM on materials pricing, Vistry’s major financial reset, and proposals to tighten letting agent regulation alongside shifting rental market dynamics.
THIS WEEK AT A GLANCE
- Government figures show planning applications and housing units permitted in England fell to record lows in the year to June 2026.
- An inspector allowed up to 58 homes on grey belt land after finding a 0.91-year housing land supply.
- Embodied carbon and the Carbon Border Adjustment Mechanism (CBAM) are now treated as material cost variables, with the EU system in force from January 2026 and the UK regime due in 2027.
- Vistry reported a £661m statutory pre-tax loss and announced a radical regional restructuring and lower annual housing output.
PLANNING & REGULATION
Planning activity drops to record lows
Government figures show the number of planning applications submitted, decided and approved by English local planning authorities plunged to record lows in the year to June 2026. The number of housing units permitted in the latest 12-month period fell by 12% year-on-year, according to the published data.
Inspector allows grey-belt homes amid acute land supply shortfall
A planning inspector allowed an outline proposal for up to 58 homes on grey belt land, citing the council’s 0.91-year housing land supply. The inspector accepted the housing land supply shortfall when weighing heritage harm and other planning considerations.
Draft environmental delivery plan proposes per-house levy
The government published a first-ever draft environmental delivery plan that proposes a per-house developer levy as part of new environmental obligations. The draft plan forms part of ongoing national policy discussions and remains at the consultation and draft stage.
BUILD COSTS & CONSTRUCTION
Embodied carbon and CBAM become commercial pricing variables
New and forthcoming Carbon Border Adjustment Mechanisms have brought embodied carbon into procurement and pricing calculations. The EU CBAM entered its definitive phase in January 2026 and the UK’s equivalent is scheduled to launch in January 2027. Importers must report embedded emissions for in-scope goods such as steel, cement and aluminium and face levies tied to carbon prices. The shift makes material carbon intensity a direct commercial variable alongside currency and commodity pricing.
DEVELOPMENT FINANCE & MARKET CONDITIONS
Vistry posts £661m loss and plans radical reset
Housebuilder Vistry reported a £661m statutory pre-tax loss for the first half, including a £475m goodwill impairment and a £73m building safety charge. The group announced it will cut operating regions from 25 to 12, reduce annual housing output to around 12,000 homes and shrink its owned landbank from about 51,000 plots to 36,000. Vistry said around 60% of future production will be partner-funded and that banks have waived certain covenants for 2026 and early 2027.
LANDLORDS & INVESTORS
Letting agent regulation proposals published
The Lettings Industry Council published proposals calling for tighter regulation of letting agents, including a public register, enforceable conduct rules and stronger professional standards. The council’s report calls for primary legislation, an impact assessment and consultation with professional bodies.
Rising competition in London lettings and tenant views of landlords
Market data from London shows competition for rental properties increased over the summer, with 24 renters registering per new instruction in August and competition rising 22.4% that month.
A separate survey by Yorkshire Building Society found private tenants generally describe their landlords positively, with 40% calling their landlord reasonable and 40% calling them approachable, while just 5% described landlords as exploitative.
Until next week
Team PDBC