Total construction output is estimated to have fallen by 1.1% in the three months to November 2025, the Office for National Statistics reveals.
The latest data represents the largest fall since March 2023, when it was 1.4%.
Over the three-month period, both new work and repair and maintenance fell by 1.0% and 1.1%, respectively.
At the sector level, four out of the nine sectors fell in the three months to November 2025.
Data shows the main negative contributor to the decrease was private housing repair and maintenance, which fell by 3.7%.
Monthly construction output is estimated to have fallen by 1.3% in November 2025.
This follows a downwardly revised decrease of 1.2% in October 2025 and a 0.3% increase in September 2025.
The decrease in monthly output in November 2025 came from decreases in both new work and repair and maintenance, which fell by 1.9% and 0.4%, respectively.
Anecdotal evidence suggests that delays in work and customer spending were affected by economic uncertainty ahead of the autumn budget announcement.
Commenting on the figures, Hampshire Trust Bank managing director of development finance Neil Leitch says: “These figures reinforce what has been evident throughout 2025. It has been a disappointing year for housebuilding, marked by a persistent gap between ambition and delivery.”
“Developers want to build, demand from buyers and tenants is clear, but the conditions required to move schemes forward with confidence are still not in place.”
“Planning remains the most significant structural issue. The challenge is not intent, but capacity and consistency. Planning departments are under-resourced, decision times are lengthening, and experienced planners are leaving the profession.”
“Without sustained investment in skills and local authority capacity, reforms on paper will struggle to translate into homes on the ground, including the proposed changes to the National Planning Policy Framework.”
“While central government has introduced funding to support the recruitment of junior planners, industry estimates suggest the overall pipeline remains thin, with fewer new entrants than the sector needs to replace those leaving.”
“Local Planning Authorities also struggle to compete with the private sector on pay and career progression, making retention increasingly difficult and placing further strain on already stretched teams.”
“There is no single fix for these issues, but confidence is the critical missing ingredient. Developers, particularly SMEs, need certainty that approvals will lead to starts and that delays can be managed realistically. What is often overlooked is the time lag in development.”
“Decisions delayed today will translate into weaker output years down the line, long after the focus has shifted elsewhere. Funding is available for well-structured, viable schemes, but projects need flexibility built in from the outset to cope with the realities of delivery. Without that confidence and consistency, the risk is that 2026 looks much like 2025.”
Meanwhile, Shawbrook managing director of development finance Terry Woodley adds: “Bad weather and seasonal slowdown heading towards the Christmas period contributed to a slight decline in November.”
“However, following the Autumn Budget and the Chancellor’s reaffirmation of a commitment to significant planning reform and housebuilding, should be cause for optimism.”
“While challenges stemming from recruitment and the lack of support for first-time buyers will remain, proposed planning reforms, pressure on local authorities to approve more projects, and the removal of red tape will inject some confidence for the year ahead. The onus will be on the Government to make sure these pledges are actually delivered – and that promises translate into actionable next steps.”
