Construction output rose slightly by 0.1% in Q3 of 2025 compared with the previous quarter, according to the latest data from the Office for National Statistics (ONS).
The modest rise was supported by a 0.6% increase in repair and maintenance work, while new work fell by 0.2%.
At the sector level, four out of nine construction sectors saw growth during the quarter.
The strongest contributor was private housing repair and maintenance, which rose by 2.9%.
In contrast, private new housing fell by 1.9%, making it the biggest drag on overall performance.
On a monthly basis, construction output grew by 0.2% in September 2025, following a 0.5% fall in August and a 0.2% increase in July.
The monthly growth came entirely from new work, which increased by 0.7%, while repair and maintenance slipped by 0.5%.
Total construction new orders rose sharply, up 9.8% (£1.08bn) compared with the previous quarter.
The increase was mainly driven by private commercial and private industrial new work.
The annual rate of construction output price growth was 2.7% in the 12 months to September 2025.
Neil Leitch, managing director, development finance at Hampshire Trust Bank, said: “As these figures show, construction remains under real pressure.
“Last week S&P’s construction PMI reported the tenth consecutive month of decline, with housing seeing its steepest fall in eight months.
“Confidence is fragile, and viability is tightening. Rising costs, extended timelines and local delays mean many schemes simply do not stack up, even when demand is strong.”
He continued: “From regulation and planning to securing skilled workers, developers, and particularly SMEs, face mounting challenges. The appetite is there from developers, and the need is clear among homebuyers and tenants.
“Lenders have the capacity to fund viable schemes, but uncertainty over timing and delivery continues to hold projects back.
“The pressure is not evenly spread. Developers in some regions face longer waits for planning and greater pressure on labour, making it even harder for smaller firms to stay active.
“For all the Budget speculation around tax, the real opportunity lies in construction. With proper investment, the Government can help secure the housing delivery pipeline, resource planning departments, and tackle the skills shortage that threatens long-term capacity.”
Leitch concluded: “Each new initiative brings promise, but the reality on the ground has barely shifted.
“Real progress depends on partnership between policymakers, lenders and developers, and what the sector needs now is follow-through, not another reset.
“The sector underpins jobs, housing and investment, and it needs stability, consistency and the confidence to deliver.”
