The Administrative center for Nationwide Statistics estimates that general development output in Nice Britain declined by way of 2.1% in Quarter 4 when put next with Quarter 3, dragged down by way of a three.6% fall in non-public sector house-building job.
New paintings fell by way of 2.6% whilst restore & repairs was once down by way of 1.5%.
In December on my own, per month development output is estimated to have fallen by way of 0.5% in comparison to November. This follows an upwardly revised lower of 0.8% in November 2025 and a downwardly revised lower of one.6% in October 2025.
The lower in per month output in December 2025 got here only from a lower of two.5% in restore & repairs, as new paintings grew by way of 1.0%.
On the other hand, around the complete 12 months, annual development output greater by way of 1.8% when put next with 2024; that is the 5th consecutive 12 months of annual enlargement, the ONS says.
The yearly fee of development output value enlargement was once 2.7% within the 365 days to December 2025.
Overall development new orders fell by way of 3.8% (£469m) in This fall 2025 when put next with Q3. This quarterly lower got here basically from non-public industrial new paintings and personal commercial new paintings.
Throughout the United Kingdom economic system as a complete, actual gross home product (GDP) is estimated to have greater by way of 0.1% in This fall in comparison to Q3, following a zero.1% building up within the earlier quarter. GDP is estimated to be 1.0% upper in This fall 2025 than in This fall 2024.
Neil Leitch, managing director of construction finance at Hampshire Consider Financial institution, mentioned of the development estimates: “Those figures underline what has been glaring right through 2025. It’s been a disappointing 12 months for housebuilding, characterized by way of a widening hole between ambition and supply. Builders wish to construct and insist from homebuyers stays transparent, however the prerequisites required to transport schemes ahead with self assurance are nonetheless no longer in position.
“Fresh information highlights the stress around the sector. Space-building stays the weakest a part of development, and the House Developers Federation has warned that viability pressures are mounting. Low approval ranges, emerging prices and coverage burdens are combining to make it more difficult for developers to carry ahead new schemes, specifically at a time when sure bet and timing subject maximum.
“The actual factor is that lengthen does lasting harm. Each and every pause in decision-making erodes viability, reduces pipeline and weakens supply capability, particularly amongst SME builders. For smaller and regional builders, that uncertainty is some distance more difficult to soak up, as a result of extended delays without delay constrain money float, website online turnover and the power to reinvest. Bettering output would require sustained funding in making plans capability and some distance higher consistency around the device. Builders want self assurance that approvals will translate into begins and that delays may also be controlled realistically. What’s continuously overpassed is the time lag in construction. Choices not on time these days will feed via into weaker output within the years forward.
“With no renewed center of attention on supply, self assurance and consistency, the chance is that housing provide continues to fall brief without reference to how sturdy the mentioned ambitions is also.”
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