Housing

Construction levels rose again during last quarter

July 24, 2026 by Brendan O'Neill

Construction levels went up again in the previous quarter, which marks the third quarter in a row where this has been the case.

The Office for National Statistics (ONS) released data showing 1.6% growth for the construction industry across the quarter. This was down to both repair works and new builds, which enjoyed growth of 2.1% and 1.1% each. Out of the nine sectors evaluated by the data, seven experienced growth in the last quarter. The highest growth of all came in the non-housing maintenance and repair sector. This grew by 3% across this three-month period.

When viewed from a month-to-month perspective though, the outlook for the industry was less bright. There was a reduction of 0.8% in construction output in May, compared with April. This was the third successive month where output fell, suggesting a more complex overall picture.

Neil Leitch works for Hampshire Trust Bank as its development finance managing director. He told Mortgage Introducer that the data closely mirrors the experience of property developers.

He then went on to add:

“Confidence remains difficult to establish, and the inconsistencies and complexities of the planning system are changing developer behaviour, with more time and capital being directed towards projects where planning risk is lower.”

Leitch concluded by saying this position was being exacerbated by an ongoing lack of energy market stability in the UK.

The many factors that are stacked against would-be homebuyers in the UK are why the help of people who have CeMAP mortgage advisor training is so essential.

Written by

Brendan O'Neill
Brendan O'Neill

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