The Office for National Statistics (ONS) estimates that construction output fell by 0.7% in Quarter 3 (July to Sept) 2026 compared with Quarter 2 (Apr to Jun) 2026, new work fell by 1.6%, while repair and maintenance grew by 0.5%.

The data published by ONS reveals that five out of the nine sectors in construction fell in Q3 2026, and that the fall of 4.7% in private new housing was the main negative contribution to the decrease.

There was an estimated 0.8% growth in September 2026, but this was following four consecutive decreases in the monthly series, including a revised decrease of 0.5% in August 2026 and a revised decrease of 0.2% in July 2026.

The increase in monthly output in September 2026 was from new work and repair and maintenance, which grew by 0.9% and 0.6%, respectively. The main contribution to the monthly increase in new work was infrastructure, which grew by 3.3%.

Total construction new orders grew by 1.2% (£107 million) in Quarter 3 2026 compared with Quarter 2 2026; this quarterly increase came mainly from public other new work and private commercial new work.

The annual rate of construction output price growth was 3.2% in the 12 months to September 2026.

Iain Wright, Partner at Claritas Tax, said: "Disappointingly, construction output was down by 0.7%, and has fallen in each quarter this year. Private housing construction output was down by a frankly alarming 4.7% whilst repair and maintenance of private housing was up by 1.5%.

"The failures of our housing market can be summed up by those two statistics. People are repairing their houses but are reluctant or unable to move. There will be a number of factors behind this, but the inability to simplify the planning process and the high cost of Stamp Duty Land Tax must be chief among them.

"There have been many calls recently for the abolition of Stamp Duty on both properties and shares and the huge friction they impose on economic activity is the greatest argument for their abolition and replacement with alternatives."

The Autumn Budget offered some hope that 2027 will see an increase in construction output, with the industry hoping that the Your First Home will play an important part in preventing a fifth consecutive annual fall in housebuilding. However, critics have said that the Budget did not address the immediate pressures on the industry.