Total construction output is estimated to have grown by 0.3% in the three months to August 2025, the latest figures from the Office for National Statistics reveal.

The data shows that over the three-month period, new work fell by 0.4%, and repair and maintenance grew by 1.3%.

At the sector level, five out of the nine sectors grew in the three months to August 2025.

The main contributor to the increase was private housing repair and maintenance, which grew by 5.6%.

Monthly construction output is estimated to have fallen by 0.3% in August 2025, after showing no growth in July 2025.

The decrease in monthly output in August 2025 came solely from a decrease in repair and maintenance (1.5%), as new work increased on the month (0.5%).

Hampshire Trust Bank managing director of development finance Neil Leitch says: “These figures are a welcome surprise given the wider challenges facing the sector. Just last month, official data showed planning approvals at record lows, while the Home Builders Federation reported that approvals for small sites have halved.”

“This level of constraint is completely unsustainable, holding back the delivery of new homes and threatening the Government’s pledge to deliver a million this Parliament.”

“Even once planning approval is secured, many projects fail to progress, stalled by rising costs, funding uncertainty, and the long wait between consent and delivery.”

“SME developers are central to local housing supply, yet they are the ones hit hardest by this lack of consistency. The funding is there to support well-structured schemes, but without certainty that approvals will translate into starts, capital and capability both sit idle.”

“The new Housing Secretary is right to want us to ‘build, baby, build’, but that ambition must be matched with action. The upcoming Budget is an opportunity to invest in planning departments, strengthen local delivery capacity, and attract new talent into construction. Until those fundamentals are in place, the shortfall in new homes will keep widening, and the regional gaps in delivery will only grow.”

McBains managing director Clive Docwra adds: “Today’s figures reflect the subdued economic picture in the industry at present, with output falling by 0.3% following no growth in July, and underperforming against the overall economy which grew by 0.1% in August.”

“The fact that new work fell by 0.4% over the three months to August reflects the cautiousness by investors to commit to spending on projects while economic uncertainties persist. A glimmer of hope is that new work orders increased in August by 0.5%.”

“However, many developers will be putting any plans on hold until after the Chancellor delivers her Budget next month, while the industry will be looking for the speech to give further incentives to get Britain building.”

“Abolishing stamp duty and reforming council tax – the latter which is still based on values from the early 1990s – would lower the barrier for moving and provide an injection of confidence in the housebuilding market, which remains sluggish.”