UK construction output has fallen for the fifth quarter straight, despite a small recovery in February, according to the latest figures from the Office for National Statistics (ONS),

The ONS said that total construction output dropped by 2% in the three months to February, the fifth consecutive fall in the rolling three-month series.

Construction fell by 2% in the three months to January 2026.

The drop in construction was largely due to less new work, which fell 3.4% over the period. Maintenance and repair activity was flat.

Six of the nine construction segments saw a fall in output, with private new housing falling the most, by 6.5%.

However, construction output increased by 1% in February, after a 0.5% rise in January and a 1.3% drop in December.

The February rise in output was driven by a 1% increase in new work and a 0.9% rise in repair and maintenance.

Hampshire Trust Bank managing director of development finance Neil Leitch said: “This drop in housebuilding reflects the reality on the ground.

“Developers are still operating with very little margin for error. The challenge is not just planning delays, but planning uncertainty, with even well-prepared, policy-compliant schemes facing less predictable outcomes. That makes it harder to commit capital with confidence.

“Viability remains finely balanced. Build costs are still high, funding conditions are tighter than many expected, and land values have not always adjusted to reflect that shift. Margins are under pressure, reducing flexibility once schemes move into delivery and limiting how many can be taken forward with confidence.”