Total development output grew by 1.2% in the second quarter (April-June 2025) in contrast with the primary quarter.
This is in keeping with the newest estimates from the Office for National Statistics which additionally reveals that new work elevated by 1.1% over the second quarter, whereas restore and upkeep grew by 1.4%.
Monthly development 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 stage, 5 out of the 9 sectors grew in June 2025; with each public and private sector work nationally growing. On a nationwide stage, public sector housing work elevated to £1.46bn from £1.29bn in Q1; and private housing to £12.65bn from £11.06bn in Q1.
Commenting on the newest information Hampshire Trust Bank managing director of improvement finance Neil Leitch stated: “An increase in new private housing is nice to see, however output remains to be under the place it was earlier than the pandemic, so there’s a lengthy approach to go.
“Approvals on paper don’t construct properties. Unless the corporations who do the work are financially steady and have the individuals they want, these permissions will simply sit there. That’s the true danger – approvals with out supply.
Leitch identified that numerous SME development corporations, and the subcontractors and suppliers they depend on, have been below elevated stress.
“Begbies Traynor’s figures show extra are in monetary misery, and ONS information has development because the slowest rising sector of the financial system in the primary quarter. When supply relies on companies working on high-quality margins, the sector is all the time one shock away from stalling.”
Leich added that the UK wouldn’t hit housing targets except the entire supply chain was sturdy sufficient to fulfill them.
“That means giving planning groups the useful resource to make well timed selections, backing SME development companies to allow them to decide to initiatives, and changing the abilities we’re dropping because the workforce ages. Without that functionality on the bottom, thea ambition to construct extra properties will keep simply that, an ambition.”
Earlier this week UK housebuilder Persimmon reported a stronger first half and ahead order ebook and business guide McBains revealed a extra upbeat outlook for UK housebuilding.
