Construction output in Great Britain fell by 0.6% in May 2025, after three months of growth, according to the latest Office for National Statistics (ONS) data.
The drop in May was down to a 2.1% fall in repair and maintenance, while new work went up by 0.6%.
Five out of nine sectors saw a decline in May, with the biggest hits coming from non-housing repair and maintenance, down 2.4%, and private housing repair and maintenance, down 1.8%.
Over the three months to May 2025, total construction output was up by 1.2%.
New work rose by 0.9% and repair and maintenance by 1.5%.
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “A decline in new private housing highlights how difficult it has become for developers to bring forward much-needed homes.
“It underlines the scale of the challenge in navigating a planning process that is too often slow, inconsistent and under-resourced.
“Planning remains the single biggest obstacle to delivery. Local authorities continue to struggle with limited resource, capacity and consistency.”
Leitch added: “The challenge is not ambition. It is the reality of a system that cannot keep pace with demand.
“Planning authorities are now determining fewer applications than they were six or seven years ago, which shows that performance has deteriorated, not improved.
“It is also important to recognise that approvals alone do not guarantee homes will be built.”
He said: “Even when consent is secured, developers must still contend with rising costs, labour shortages and viability pressures that can derail progress.
“We know what the issues are. This is not about political direction. It is about ensuring the system functions effectively on the ground.
“Until that happens, housing output will remain well below the level needed to meet demand.”
