Monthly construction output is estimated to have fallen by 0.6% in May 2025; this follows three consecutive periods of growth, including an increase of 0.8% in April 2025.
This is according to the latest figures from the Office for National Statistics. The ONS figures show that both public and private housing work fell slightly against April.
The main decrease in monthly output in May 2025 came mostly from a decrease in repair and maintenance (2.1% fall).
Commenting on the figures from a housebuilding perspective HTB managing director of development finance Neil Leitch said: “A decline in new private housing highlights how difficult it has become for developers to bring forward much-needed homes. It underlines the scale of the challenge in navigating a planning process that is too often slow, inconsistent and under-resourced.”
He added that planning remained the single biggest obstacle to delivery.
“Local authorities continue to struggle with limited resource, capacity and consistency. The challenge is not ambition. It is the reality of a system that cannot keep pace with demand. Planning authorities are now determining fewer applications than they were six or seven years ago, which shows that performance has deteriorated, not improved.
Leitch said that it was also important to recognise that approvals alone did not guarantee homes would be built. Even when consent was secured, developers still had to contend with rising costs, labour shortages and viability pressures that could derail progress.
“We know what the issues are. This is not about political direction. It is about ensuring the system functions effectively on the ground. Until that happens, housing output will remain well below the level needed to meet demand.”
McBains managing director Clive Docwra said: “After last month’s figures showed the construction sector outperformed the overall economy in April, today’s news will disappoint the industry and increase doubts that growth is on an upward trajectory.”
He warned that any growth could be sluggish with order books still playing catch up, but he hoped that recent announcements such as the £39bn funding to build more affordable homes would provide a confidence boost when the sector most needs it, given the ongoing uncertain global economic picture.
