Construction output figures from the Office of National Statistics (ONS) show a 0.6% decrease in output in April after two successive months of growth.

At the sector level, five out of the nine sectors saw a fall in April 2023, with the main contributors to the monthly decrease being private housing repair and maintenance and private housing new work, which decreased 5.7% (£149m) and 3.0% (£99mn), respectively.

According to the ONS, Anecdotal evidence suggested a continued slow-down in private housing, referencing economic worries with customers hesitant to request work; despite this, similar to last month, some companies across other sectors have again reported an easing in inflation.

Commenting on the latest numbers McBains managing director of property and construction  Clive Docwra says:

“After last month’s figures fuelled hopes of green shoots of recovery, today’s statistics will come as a blow to the construction sector.

“Particularly disappointing was that the fall was as a result of a decrease in new work, suggesting that confidence remains low among many big investors.

“It’s little surprise that private housing continues to struggle, and with falling house prices and low mortgage approval rates it will take some months before volume housebuilding shows a turnaround.”

Over the last week, Mortgage Strategy and Mortgage Finance Gazette have highlighted the latest trading updates from key UK housebuilders – including Crest Nicholson and Bellway Homes – which have pointed to slowdown in housing demand in an increasingly challenging environment.