Monthly construction output grew by 0.9% in April 2025; the third consecutive period of positive growth, following an increase of 0.5% in March 2025.

This is according to the latest data from the Office for National Statistics (ONS). It shows that the main contributors to the monthly increase were infrastructure and private housing work, which rose by 2.0% and 1.5%, respectively.

Commenting on the latest figures, Hampshire Trust Bank managing director of development finance Neil Leitch said that another month of growth in private housing was an encouraging sign of resilience in the market.

“Developers are finding ways to move forward despite challenging conditions, but we cannot ignore the biggest hurdle they face: the planning system. Painfully long waits for approvals are still holding back delivery of much-needed homes.

“The government’s recent proposals to streamline the system for SME developers are a welcome signal, and it is positive to see the issues raised by the industry starting to gain traction. But we have to be clear-eyed about what this will achieve in practice. Without serious and sustained investment in local planning departments, the system simply lacks the capacity to deliver faster outcomes.”

Leitch said policy ambition alone were not enough. “Developers are dealing with an unpredictable system where delays can derail project timelines, add cost pressures and affect funding viability. Until those practical realities are addressed on the ground, it will remain an uphill battle to get anywhere close to the government’s long-standing ambition of building 300,000 new homes per year.”

McBains, managing director of property and construction Clive Docwra said:

“Today’s figures are better than many expected, especially given they buck the overall economic picture, and will give hope that the construction sector’s recovery may be starting to generate some impetus.

“The industry will still be cautious given the global economic picture – not least uncertainty over what may happen next with President Trump’s tariffs – having a knock-on effect on investment decisions.

“However, yesterday’s Spending Review’s announcement of new money for social and affordable housing and infrastructure projects will give a welcome confidence boost to a number of work sectors.

He added: “The sector will also be hoping for an interest rate cut next week which would help trigger more investment at a time when continued momentum is still needed.”