March saw the biggest monthly fall in construction output since records began a decade ago, figures from the Office for National Statistics reveal.

Overall there was a 5.9 per cent month-on-month drop in output in the month that lockdown began, driven by a 6.2 per cent decrease in new work and a 5.1 per cent decrease in repair and maintenance.

The ONS says the decrease in new work was the result of falls across all sectors, but private new housing and private commercial were the largest contributors, falling by 6.4 per cent and 7.1 per cent respectively.

Repair and maintenance also fell across all sectors but private housing was the biggest contributor with a record drop of 8.6 per cent.

Construction and design agency McBains’ managing director Clive Docwra says: “Today’s figures confirm the construction industry is facing its most challenging period since the 2008 financial crisis.

“The industry was more affected by the lockdown than most as the majority of work cannot be undertaken from home.

“What is more, the worst is yet to come with the impact of coronavirus yet to be fully seen.

“While the Prime Minister has identified the industry as one that can now return, construction work cannot just simply pick up again because many supply chains – not only in the UK but also in Asia – are still static as a result of the pandemic.”

Docwra adds: “The industry is also facing short-term labour shortages because many foreign construction workers that returned home as coronavirus took hold are reluctant to return given the impending Brexit. 

“And there are challenges in firms operating while maintaining social distancing.

“Many small businesses in the sector are facing continuing pressure on their finances from the current suspension of projects, so the coronavirus loan process needs to be streamlined and faster decisions need to be made on loan approvals too.”

Spicerhaart Part-Exchange and Assisted Move business development director Neil Knight says: “It was inevitable that we would see a sharp fall in output on the back of the covid-19 outbreak, with many sites mothballed and others operating at reduced capacity. 

“But there is light at the end of the tunnel. 

“We are now seeing large contractors bringing sites back into operation, and the government has sent out a clear message to encourage construction workers to go back on site, so we would expect to see volumes pick up again in months to come, although they may take some time to reach pre-coronavirus levels.

“We’ve also had great news in recent days about on-site valuations and viewings resuming. 

“The government quite rightly wants to get the property market moving again as it is an important motor that helps drive the rest of the economy.

“We have continued to do steady business during the current crisis by adapting our working methods. 

“Further adaptations will be needed now but we are well placed to hit the ground running now the restrictions are being loosened.”