Monthly construction output is estimated to have grown by 0.5% in March 2025, according to the latest construction output report from the Office for National Statistics.

At the sector level, five out of the nine sectors grew in March 2025; the main contributors to the monthly increase were private housing and infrastructure new work, which rose by 2.3% and 2.5%, respectively.

Commenting on the new figures, McBains managing director of property and construction consultancy Clive Docwra suggested March’s increase in output coming off the back of moderate growth in February, would give further cheer to the construction industry, especially with the increase in new work in housing and infrastructure.

“However, it’s too early to say if the sector has turned a corner in terms of growth being maintained.  Caution amongst investors is still apparent in a number of sectors due to the current geopolitical climate and the UK economic outlook – and bear in mind that this return covers the period before President Trump’s tariffs were announced, which shook investors’ confidence.

“Furthermore, although private housing new work grew by 2.3% in March, the industry will be worried that this week’s announcement on the proposed immigration changes restricting the number of skilled workers will have a significant impact on future work capacity – and it will also have a huge bearing on whether the government can meet its housing targets too.”

He added that another cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.

Hampshire Trust Bank managing director development finance Neil Leitch said the increase in private housing showed that developers were  finding ways to navigate the many hurdles they face in producing the homes the nation so badly needs.

“The planning system remains a concern, acting as a bottleneck where SME developers in particular face unacceptably long waits for decisions. These delays can be disastrous for such projects, before you even consider the cost pressures and labour shortages the developers have to account for.

He added: “Alongside improving the planning process, as an industry we need to ensure developers enjoy access to funding that reflects their actual needs. That means flexibility and a bespoke structure, allowing the developer to push ahead with confidence. Without that, it will be an uphill battle to improve the rate of housing output.”