Monthly development output is estimated to have fallen by 0.6% in May 2025; this follows three consecutive durations of progress, together with a rise of 0.8% in April 2025.
This is in accordance with the newest figures from the Office for National Statistics. The ONS figures present that each private and non-private housing work fell barely towards April.
The important lower in month-to-month output in May 2025 got here largely 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 mentioned: “A decline in new personal housing highlights how tough it has develop into for builders to carry ahead much-needed properties. It underlines the size of the problem in navigating a planning course of that’s too typically sluggish, 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 will not be ambition. It is the fact of a system that can’t hold tempo with demand. Planning authorities at the moment are figuring out fewer purposes than they had been six or seven years in the past, which reveals that efficiency has deteriorated, not improved.
Leitch mentioned that it was additionally essential to recognise that approvals alone didn’t assure properties can be constructed. Even when consent was secured, builders nonetheless needed to deal with rising prices, labour shortages and viability pressures that might derail progress.
“We know what the problems are. This will not be about political route. It is about guaranteeing the system features successfully on the bottom. Until that occurs, housing output will stay nicely beneath the extent wanted to fulfill demand.”
McBains managing director Clive Docwra mentioned: “After final month’s figures confirmed the development sector outperformed the general financial system in April, right now’s information will disappoint the business and improve doubts that progress is on an upward trajectory.”
He warned that any progress may very well be sluggish with order books nonetheless enjoying catch up, however he hoped that current bulletins such because the £39bn funding to construct extra reasonably priced properties would supply a confidence enhance when the sector most wants it, given the continuing unsure world financial image.
