Monthly building output is estimated to have fallen by 0.6% in May 2025; this follows three consecutive intervals of development, together with a rise of 0.8% in April 2025.
This is in accordance to the most recent figures from the Office for National Statistics. The ONS figures present that each private and non-private housing work fell barely in opposition to April.
The principal lower in month-to-month output in May 2025 got here principally from a lower in restore and upkeep (2.1% fall).
Commenting on the figures from a housebuilding perspective HTB managing director of growth finance Neil Leitch stated: “A decline in new personal housing highlights how troublesome it has develop into for builders to carry ahead much-needed properties. It underlines the dimensions of the problem in navigating a planning course of that’s too typically gradual, inconsistent and under-resourced.”
He added that planning remained the one largest impediment to supply.
“Local authorities proceed to wrestle with restricted useful resource, capability and consistency. The problem isn’t ambition. It is the truth of a system that can’t maintain tempo with demand. Planning authorities are actually figuring out fewer purposes than they have been six or seven years in the past, which reveals that efficiency has deteriorated, not improved.
Leitch stated that it was additionally essential to recognise that approvals alone didn’t assure properties can be constructed. Even when consent was secured, builders nonetheless had to take care of rising prices, labour shortages and viability pressures that might derail progress.
“We know what the problems are. This isn’t about political course. It is about making certain the system features successfully on the bottom. Until that occurs, housing output will stay properly under the extent wanted to meet demand.”
McBains managing director Clive Docwra stated: “After final month’s figures confirmed the development sector outperformed the general financial system in April, right now’s information will disappoint the trade and enhance doubts that development is on an upward trajectory.”
He warned that any development may very well be sluggish with order books nonetheless taking part in catch up, however he hoped that current bulletins such because the £39bn funding to construct extra inexpensive properties would supply a confidence increase when the sector most wants it, given the continued unsure international financial image.
