Construction output bounced back growing by 0.4% in August driven by new home starts, official figures show.

New orders across the sector rose by 1.6%, while repair and maintenance fell by 1%, according to data from the Office for National Statistics.

This reverses a 0.4% fall across the sector in July.

August figures were driven by new private housing work, which jumped 3.4% and new commercial output, which rose 2.2%.

Over a more representative three-month period, construction output grew 1% in the quarter to August 2024, boosted by a 1.7% increase in new work, while repair and maintenance was flat.

Spicerhaart divisional director Neil Knight says: “In our conversations with housing developers, they report improving confidence and increasing momentum.

“While there’s still question marks around the upcoming budget and its impact on household finances, the renewed emphasis on housebuilding – along with growing sentiment around the path of interest rates – is helping to drive activity.”

Shawbrook managing director of development finance Terry Woodley adds: “Looking ahead, developers are preparing for a busier autumn, particularly with the government already introducing supportive reforms.

“There’s anticipation that the Budget will offer more clarity on recent planning process changes and the proposed ‘brownfield passports’.

“These initiatives are expected to further stimulate market activity as housebuilding accelerates to meet set targets.”