Monthly construction output is estimated to fall by 0.6% in May 2025; this is the growth for three consecutive periods, including an increase of 0.8% in April 2025.
This is based on the latest data from the National Bureau of Statistics. ONS figures show that both public and private housing jobs fell slightly in April.
In May 2025, the main reduction in monthly production was mainly due to the reduction in repairs and maintenance (down 2.1%).
Comment on these from a home construction perspective, Neil Leitch, managing director of finance for development at HTB, said: “The decline in new private housing highlights the difficulty of developers to propose much-needed homes. It highlights the challenges in the scope of the navigation scale, while increasingly slow, inconsistent, inconsistent and inadequate.”
He added that the plan remains the biggest hurdle to delivery.
“Local authorities continue to struggle with limited resources, competence and consistency. Challenges are not ambitions. This is the reality of a system that cannot be kept in sync with demand. Planning departments are now determining fewer applications than six to seven years ago, which indicates worsening performance and no improvement.
It is also important to recognize that approval alone does not guarantee that a house will be built, Leach said. Even with the approval, developers still have to increase their pressure on feasibility that may lead to progress, labor shortages and feasibility.
“We know what the problem is. It has nothing to do with the political direction. It’s about ensuring that the system works effectively on the ground. Until this happens, housing output will remain well below the level needed to meet demand.”
Clive Docwra, managing director of MCBAINS, said: “Last month’s data showed that the overall economic performance of the construction sector outperformed the overall economy in April, and today’s news will disappoint the industry and increase doubts that growth is on the upward trajectory.”
He warned that growth in any order books that are still catching up may be weak, but he hopes the recent announcement of £39 billion in funding such as building more affordable homes will bring greater confidence when the industry needs it most, given the ongoing uncertain global economic image.
