Total UK construction output is estimated to have fallen by 2.1% in Q4 last year compared with Q3, according to the latest data from the Office for National Statistics (ONS).

The slump was due to a 2.6% fall in new work and a 1.5% fall in repair and maintenance work. Output in seven out of the nine sectors tracked by ONS fell in Q4 with the 3.6% decrease in private new housing being the main negative contributor.

Monthly construction output is estimated to have fallen by 0.5% in December 2025, following 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 and maintenance, as new work grew by 1.0%.

Annual construction output increased by 1.8% in 2025 compared with 2024 – the fifth consecutive year of annual growth.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After October and November proved disappointing months in terms of output, today’s news will be of further concern to the industry. It is particularly concerning to see that total construction new orders fell by 3.8% in Q4 2025 compared with Q3 2025, with this decrease coming mainly from private commercial new work and private industrial new work.

“However, it is important to note that some delays in work could be as a result of a logjam at the Building Safety Regulator, while December’s figures may also reflect a hangover from uncertainty around the chancellor’s Budget in late November, so the industry will be hoping that an increase in orders will be registered in next month’s figures.”

Dr David Crosthwaite, chief economist at BCIS, added: “Given the significant economic headwinds and sector-specific challenges that UK construction faced in 2025, the annual uptick in output is promising. Taken with new orders data, which show a healthy rise in annual orders committed to last year, the latest output figures are testament to businesses’ resilience. The industry even ended up outperforming the wider economy.

“Of course, that’s not the whole picture. At a sector level, both datasets expose weaknesses in the residential market. Total new housing output only saw a marginal increase in 2025 on 2024 output and new orders for private housing were down. More government support for first-time buyers might go some way to improving demand in the residential sector. Beyond the housing and commercial slowdown, confidence seems to be making a hesitant return. The Infrastructure Pipeline update, ongoing reforms at the Building Safety Regulator and any further reduction in interest rates and inflation should hopefully catalyse more investment decisions in the months to come.”