The Office for National Statistics has released construction output data for last November, showing a drop in output of 1.3%
The ONS stats for November 2025 show that in three months up to that point, construction output fell by 1.1%, and in November alone it fell by 1.3%.
In those three months, new work fell by 1%, while repair and maintenance fell by 1.1%.
Another month of decline
In November alone, new work fell by 1.9% and repair and maintenance fell by 0.4%. This drop in November follows a drop of 1.2% in October, and offsets the mild 0.3% rise seen in September.
On a sector level, four sectors reported falling with private housing repair and maintenance dropping by 3.7%, the largest drop in this period.
It is felt that November’s drop is due to economic uncertainty in the lead up to the Autumn Budget, and the postponing of customer spending decisions.
The full publication can be found here.
“Planning remains the most significant structural issue”
Some comments on the contents of the stats agree that an upturn for construction is needed.
Neil Leitch, managing director of development finance at Hampshire Trust Bank: “These figures reinforce what has been evident throughout 2025. It has been a disappointing year for housebuilding, marked by a persistent gap between ambition and delivery. Developers want to build, demand from buyers and tenants is clear, but the conditions required to move schemes forward with confidence are still not in place.
“Planning remains the most significant structural issue. The challenge is not intent, but capacity and consistency. Planning departments are under-resourced, decision times are lengthening, and experienced planners are leaving the profession. Without sustained investment in skills and local authority capacity, reforms on paper will struggle to translate into homes on the ground, including the proposed changes to the National Planning Policy Framework.
“While central government has introduced funding to support the recruitment of junior planners, industry estimates suggest the overall pipeline remains thin, with fewer new entrants than the sector needs to replace those leaving. Local Planning Authorities also struggle to compete with the private sector on pay and career progression, making retention increasingly difficult and placing further strain on already stretched teams.
“There is no single fix for these issues, but confidence is the critical missing ingredient. Developers, particularly SMEs, need certainty that approvals will lead to starts and that delays can be managed realistically. What is often overlooked is the time lag in development. Decisions delayed today will translate into weaker output years down the line, long after the focus has shifted elsewhere. Funding is available for well-structured, viable schemes, but projects need flexibility built in from the outset to cope with the realities of delivery. Without that confidence and consistency, the risk is that 2026 looks much like 2025.”
Richard Cook, senior economics director at Pegasus Group, said: “It is disappointing, but not surprising, that today’s construction output data shows yet another decline. An endemic skills and labour shortage, a challenging economic climate, and a lack of investment have all set construction output on a course of stagnation.
“Legislative changes on the horizon such as the National Planning Policy Framework are good opportunities for growth but only if the Government nails the delivery: cutting down planning delays and developing infrastructure are vital for kickstarting growth.
“We now need the Government to turn promises into action; and closing the skills gap by investing in workforce development and developing apprenticeship schemes is a key part of this. The construction industry generates billions of pounds a year for the economy: its success is vital for reaching the Government’s ambitious 1.5 million new homes target, which in itself would be a gamechanger for the UK economy.”
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