Total construction output in Great Britain grew by 0.3% in the three months to August 2025, according to the latest figures from the Office for National Statistics (ONS).
The rise was driven by a 1.3% increase in repair and maintenance work, offsetting a 0.4% fall in new construction.
Five of the nine construction sectors recorded growth over the period, with private housing repair and maintenance the largest contributor, up 5.6%.
However, monthly output fell by 0.3% in August 2025, following a flat reading in July (revised from a previously estimated 0.2% rise).
The ONS said August’s decline was due entirely to a 1.5% drop in repair and maintenance, while new work increased by 0.5%.
Neil Leitch, managing director, development finance at Hampshire Trust Bank, said: “These figures are a welcome surprise given the wider challenges facing the sector.
“Just last month, official data showed planning approvals at record lows, while the Home Builders Federation reported that approvals for small sites have halved.
“This level of constraint is completely unsustainable, holding back the delivery of new homes and threatening the Government’s pledge to deliver a million this Parliament.”
He added: “Even once planning approval is secured, many projects fail to progress, stalled by rising costs, funding uncertainty, and the long wait between consent and delivery.
“SME developers are central to local housing supply, yet they are the ones hit hardest by this lack of consistency. The funding is there to support well-structured schemes, but without certainty that approvals will translate into starts, capital and capability both sit idle.
“The new Housing Secretary is right to want us to ‘build, baby, build’, but that ambition must be matched with action.
“The upcoming Budget is an opportunity to invest in planning departments, strengthen local delivery capacity, and attract new talent into construction. Until those fundamentals are in place, the shortfall in new homes will keep widening, and the regional gaps in delivery will only grow.”
