UK Construction Output Falters in October 2025, Showing Fragile Recovery

UK construction output experienced a decline in October 2025, falling by 0.6% compared to the previous month. This downturn follows a modest increase in September, highlighting the ongoing fragility of the sector’s recovery. Both new construction projects and repair and maintenance work contributed to the monthly decrease.

Key Takeaways

Monthly construction output fell by 0.6% in October 2025.
The three-month period to October saw a 0.3% decrease in total output.
Private housing repair and maintenance was the main contributor to the decline.
Concerns remain over planning system delays and developer confidence.

Monthly Output Decline

The Office for National Statistics (ONS) reported that monthly construction output contracted by 0.6% in October 2025. This followed a 0.2% rise in September. The decrease was driven by a 0.7% fall in new work and a 0.6% drop in repair and maintenance activities.

Three-Month Trends

Over the three months leading up to October 2025, total construction output saw a decrease of 0.3%. Within this period, repair and maintenance work fell by 1.0%, while new work experienced a slight growth of 0.1%. Four out of the nine sectors surveyed reported a decline.

Sectoral Performance

The private housing repair and maintenance sector was identified as the primary negative contributor to the overall decrease, experiencing a significant drop of 2.3%. Private new housing also saw a decline of 1% during the three-month period.

Industry Expert Opinions

Industry professionals expressed concerns about the sector’s stability. Jo Streeten, managing director for buildings & places at Aecom, noted that the dip underscores the fragility of the recovery and that clients are awaiting clearer signs of faster progress before committing to major projects. She suggested that practical measures like increasing the number of planners, alongside the adoption of AI and digital tools to expedite review processes, could boost confidence and create a more robust pipeline for 2026.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, echoed these sentiments, stating that housebuilding has struggled for momentum. He highlighted that developers face tightening viability conditions and a lack of clarity and support from the surrounding system. Leitch pointed to planning system pressures, with a significant number of planners considering leaving the profession, which could further lengthen decision times and widen the gap between granted permissions and actual site starts. He emphasized the need for consistency, capacity, and follow-through from policymakers, alongside collaboration between policymakers, developers, and lenders, to ensure construction underpins economic growth.