Total construction output grew by 1.2% in the second quarter (April-June 2025) compared with the first quarter.

This is according to the latest estimates from the Office for National Statistics which also shows that new work increased by 1.1% over the second quarter, while repair and maintenance grew by 1.4%.

Monthly construction output is estimated to have grown by 0.3% in June 2025; this follows a fall of 0.5% in May 2025 and an increase of 0.9% in April 2025.

At the sector level, five out of the nine sectors grew in June 2025; with both public and private sector work nationally increasing. On a national level, public sector housing work increased to £1.46bn from £1.29bn in Q1; and private housing to £12.65bn from £11.06bn in Q1.

Commenting on the latest data Hampshire Trust Bank managing director of development finance Neil Leitch said: “A rise in new private housing is good to see, but output is still below where it was before the pandemic, so there is a long way to go.

“Approvals on paper do not build homes. Unless the firms who do the work are financially stable and have the people they need, those permissions will just sit there. That’s the real risk – approvals without delivery.

Leitch pointed out that a lot of SME construction firms, and the subcontractors and suppliers they rely on, were under increased  pressure.

“Begbies Traynor’s figures show more are in financial distress, and ONS data has construction as the slowest growing sector of the economy in the first quarter. When delivery depends on businesses operating on fine margins, the sector is always one shock away from stalling.”

Leich added that the UK would not hit housing targets unless the whole delivery chain was strong enough to meet them.

“That means giving planning teams the resource to make timely decisions, backing SME construction businesses so they can commit to projects, and replacing the skills we are losing as the workforce ages. Without that capability on the ground, thea ambition to build more homes will stay just that, an ambition.”

Earlier this week UK housebuilder Persimmon reported a stronger first half and forward order book and industry consultant McBains revealed a more upbeat outlook for UK housebuilding.