The Office for National Statistics estimates that total construction output in Great Britain declined by 2.1% in Quarter 4 compared with Quarter 3, dragged down by a 3.6% fall in private sector house-building activity.
New work fell by 2.6% while repair & maintenance was down by 1.5%.
In December alone, monthly construction output is estimated to have fallen by 0.5% compared to November. This follows an upwardly revised decrease of 0.8% in November 2025 and a downwardly revised decrease of 1.6% in October 2025.
The decrease in monthly output in December 2025 came solely from a decrease of 2.5% in repair & maintenance, as new work grew by 1.0%.
However, across the full year, annual construction output increased by 1.8% compared with 2024; this is the fifth consecutive year of annual growth, the ONS says.
The annual rate of construction output price growth was 2.7% in the 12 months to December 2025.
Total construction new orders fell by 3.8% (拢469m) in Q4 2025 compared with Q3. This quarterly decrease came mainly from private commercial new work and private industrial new work.
Across the UK economy as a whole, real gross domestic product (GDP) is estimated to have increased by 0.1% in Q4 compared to Q3, following a 0.1% increase in the previous quarter. GDP is estimated to be 1.0% higher in Q4 2025 than in Q4 2024.
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said of the construction estimates: 鈥淭hese figures underline what has been evident throughout 2025. It has been a disappointing year for housebuilding, characterised by a widening gap between ambition and delivery. Developers want to build and demand from homebuyers remains clear, but the conditions required to move schemes forward with confidence are still not in place.
聽鈥淩ecent data highlights the strain across the sector. House-building remains the weakest part of construction, and the Home Builders Federation has warned that viability pressures are mounting. Low approval levels, rising costs and policy burdens are combining to make it harder for builders to bring forward new schemes, particularly at a time when certainty and timing matter most.
鈥淭he real issue is that delay does lasting damage. Each pause in decision-making erodes viability, reduces pipeline and weakens delivery capacity, especially among SME developers. For smaller and regional developers, that uncertainty is far harder to absorb, because prolonged delays directly constrain cash flow, site turnover and the ability to reinvest. Improving output will require sustained investment in planning capacity and far greater consistency across the system. Developers need confidence that approvals will translate into starts and that delays can be managed realistically. What is often overlooked is the time lag in development. Decisions delayed today will feed through into weaker output in the years ahead.
鈥淲ithout a renewed focus on delivery, confidence and consistency, the risk is that housing supply continues to fall short regardless of how strong the stated ambitions may be.鈥�
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