New data from the Office for National Statistics reports that despite UK construction output falling in the previous three months, it actually grew by 1% in February 2026
This follows an upwardly revised increase of 0.5% in January 2026, and a downwardly revised decrease of 1.3% in December 2025, reflecting non-linear changes in UK construction output.
ONS reported that the increase in monthly output in February 2026 came from increases in both new work and repair and maintenance, which grew by 1.0% and 0.9%, respectively.
A drop in housebuilding affected UK construction output
At the sector level, six out of the nine sectors fell in the three months leading up to February 2026.
The main negative contributor to the decrease in construction output was private new housing, which fell by 6.5%.
Neil Leitch, managing director of development finance, Hampshire Trust Bank, commented: “This drop in housebuilding reflects the reality on the ground.
“Developers are still operating with very little margin for error. The challenge is not just planning delays, but planning uncertainty, with even well-prepared, policy-compliant schemes facing less predictable outcomes. That makes it harder to commit capital with confidence.”
He added: “That is shaping behaviour across the market. Developers are becoming more selective, focusing on schemes that are deliverable in current conditions and managing how and when capital is deployed to avoid overextending in a less predictable environment.
“In a UK construction market like this, the emphasis is on structuring schemes realistically and working with funding partners who can provide consistency, flexibility and direct access to decision-makers through the life of a project.”
New work fell by 3.4%, but began to pick up in February
Over the three-month period, new construction work fell by 3.4%, while repair and maintenance showed no growth (0.0%).
However, it began to pick up in February, with private work growing by 4.3%.
“After new work fell by more than 3% in the three months to February, the industry will be encouraged that February saw an increase in new orders,” explained Clive Docwra, managing director of property and construction consultancy McBains.
“But it’s a mixed bag – while private new housing work picked up more than we expected with growth of 4.3% in February, commercial orders were down 0.9% over the month.
“And despite the ceasefire in the Iran war, we shouldn’t fall into the trap of being overly optimistic about the future.
“The impact of supply chain delays, rising manufacturing and transport costs, general inflationary pressures, and borrowing costs is progressively building in the market, and it’s likely that these factors will have a delayed impact on tender prices and investor appetite for new opportunities. Ultimately, this will continue to frustrate project starts and completions.”
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