This makes the period the fourth consecutive decline in construction in a row, the ONS said.

The fall was caused by a 3.2% drop in maintenance over the period, as well as a 0.4% fall in repair and new work.

Private new housing was the construction sector that fell the most, by 6.3%.

Despite the fall in construction over the quarter, in the month of January construction rose by 0.2%, the first rise after three monthly falls in a row.

The rise was caused by a 3.3% increase in repair and maintenance, the ONS said.

Hampshire Trust Bank managing director of development finance Neil Leitch said: “A fall in housebuilding output will disappoint policymakers, but it will not surprise anyone working in the sector. Developers have been operating in very challenging conditions and the industry is still struggling to regain momentum.

“The deeper issue is viability. Planning delays remain a major constraint, but the pressure is broader than that. Policy costs have increased, inflation uncertainty has returned and funding conditions are less predictable than many expected coming into the year.”

Clive Docwra, managing director of property and construction consultancy McBains, said: “Following 2025 ending in disappointment, January’s return at least shows some growth, albeit as a result of repair and maintenance.

“But it’s clear from today’s figures that investor appetite for major projects remains weak, with new work falling by 2% in January, and the longer-term picture over the three months to January showing a similar fall in output. Particularly concerning is the work in seven in nine work sectors going backwards, and especially the 6.3% fall in new housing, which is one of the sharpest drops in recent years.

“The worry, of course, is that along with an already fragile economic climate, the Middle East crisis will impact construction by driving up material costs and disrupting global supply chains, so the outlook for 2026 is already looking bleaker than expected.”