This is according to the Home Builder Federation’s (HBF) SME Sentiment Survey which has found developers in London to be the most pessimistic.

In the capital, 57% of SME developers have a negative view with only 14% having a positive outlook.

The South West and South East also had negative outlooks with 52% and 51%, respectively, of developers in these regions feeling this way.

Wales stood out as the most optimistic region, with 67% of SME builders having a positive outlook.

The HBF assessed why developers are feeling more pessimistic, and respondents pointed to the increased cost of doing business.

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Rising build costs and additional policies are making it more difficult for projects to make sense financially, with 57% of all SME builders identifying viability pressures as a key barrier to delivery.

At the same time, 76% of respondents identified planning delays as continuing to frustrate their businesses and 27% are expecting to reduce land acquisitions over the coming months due to high costs and low availability.

“While planning changes have been positive, much more is needed to address the concerns of SMEs to enable them to play their part in delivering more homes,” said Neil Jefferson, CEO at the HBF.

“At the same time, the lack of support for first-time buyers continues to constrain demand.

“Without further action on both viability and affordability, the government’s housing ambitions will become increasingly difficult to realise.”