Construction output for private housing across Britain is estimated to have fallen 6.3% in the three months to January 2026, according to new data from the Office for National Statistics (ONS).
According to the ONS, total construction output during the period is estimated to have dropped 2%. This marks the fourth consecutive fall in construction output in the ONS’s three-monthly series, with new work and repair and maintenance also falling by 3.2% and 0.4%, respectively.
Of the nine construction sectors the ONS monitors, seven saw drops in construction output in the three months to January, with the main negative contributor being new private housing.
However, monthly construction output is estimated to have grown by 0.2% in January, but the ONS attributes this solely to an increase in repair and maintenance, which grew by 3.3% as new work fell by 2%.
Earlier this year, the Ministry of Housing, Communities and Local Government published data showing that construction starts in England rose 18% year on year in the 12 months to the end of September 2025, while the number of completions and planning approvals fell 10% and 15%, respectively.
Following publication of the data today (13 March), Clive Docwra, managing director of property and construction consultancy McBains, said the 6.3% drop has dealt a “significant blow to the government’s housebuilding ambitions”.
He added: “Following 2025 ending in disappointment, January’s return at least shows some growth, albeit as a result of repair and maintenance.
“But it’s clear from today’s figures that investor appetite for major projects remains weak, with new work falling by 2% in January, and the longer-term picture over the three months to January showing a similar fall in output.
“Particularly concerning is the work in seven in nine work sectors going backwards and especially the 6.3% fall in new housing, which is one of the sharpest drops in recent years – representing a significant blow to the government’s housebuilding ambitions.
“The worry, of course, is that along with an already fragile economic climate, the Middle East crisis will impact construction by driving up material costs and disrupting global supply chains, so the outlook for 2026 is already looking bleaker than expected.”
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