Total development output is estimated to have grown by 0.3% in the three months to August 2025, the newest figures from the Office for National Statistics reveal.
The knowledge reveals that over the three-month interval, new work fell by 0.4%, and restore and upkeep grew by 1.3%.
At the sector degree, 5 out of the 9 sectors grew in the three months to August 2025.
The most important contributor to the rise was non-public housing restore and upkeep, which grew by 5.6%.
Monthly development output is estimated to have fallen by 0.3% in August 2025, after exhibiting no progress in July 2025.
The lower in month-to-month output in August 2025 got here solely from a lower in restore and upkeep (1.5%), as new work elevated on the month (0.5%).
Hampshire Trust Bank managing director of improvement finance Neil Leitch says: “These figures are a welcome shock given the broader challenges dealing with the sector. Just final month, official knowledge confirmed planning approvals at report lows, whereas the Home Builders Federation reported that approvals for small websites have halved.”
“This degree of constraint is totally unsustainable, holding again the supply of latest houses and threatening the Government’s pledge to ship 1,000,000 this Parliament.”
“Even as soon as planning approval is secured, many initiatives fail to progress, stalled by rising prices, funding uncertainty, and the lengthy wait between consent and supply.”
“SME builders are central to native housing provide, but they’re those hit hardest by this lack of consistency. The funding is there to help well-structured schemes, however with out certainty that approvals will translate into begins, capital and functionality each sit idle.”
“The new Housing Secretary is correct to need us to ‘construct, child, construct’, however that ambition have to be matched with motion. The upcoming Budget is a chance to take a position in planning departments, strengthen native supply capability, and entice new expertise into development. Until these fundamentals are in place, the shortfall in new houses will hold widening, and the regional gaps in supply will solely develop.”
McBains managing director Clive Docwra provides: “Today’s figures mirror the subdued financial image in the business at current, with output falling by 0.3% following no progress in July, and underperforming in opposition to the general economic system which grew by 0.1% in August.”
“The undeniable fact that new work fell by 0.4% over the three months to August displays the cautiousness by buyers to decide to spending on initiatives whereas financial uncertainties persist. A glimmer of hope is that new work orders elevated in August by 0.5%.”
“However, many builders can be placing any plans on maintain till after the Chancellor delivers her Budget subsequent month, whereas the business can be in search of the speech to provide additional incentives to get Britain constructing.”
“Abolishing stamp responsibility and reforming council tax – the latter which continues to be primarily based on values from the early Nineties – would decrease the barrier for shifting and supply an injection of confidence in the housebuilding market, which stays sluggish.”
