UK construction output falls for fourth consecutive month

Construction output in Great Britain fell by 0.2% in August 2026, marking the fourth consecutive monthly decline, according to the latest figures from the Office for National Statistics (ONS).

The figures also revealed a 1.0% decline in construction output in the three months to August, the second consecutive fall in the three-monthly series.

Over the three-month period, new construction work decreased by 1.4%, while repair and maintenance activity fell by 0.3%. Five of the nine construction sectors recorded declines, with private new housing making the largest negative contribution, falling by 3.2%.

On a monthly basis, new work declined by 0.7% in August, although repair and maintenance activity increased by 0.4%.

The figures highlight continued challenges across the construction sector, particularly for smaller housebuilders facing rising costs, labour shortages and delays in securing planning permission.

Azfar Rizvi, Commercial Director, Corporate & Commercial Lending at Aldermore, said:

“Today’s ONS figures, showing construction output fell by 0.2% in August, the fourth consecutive decrease in the monthly series, highlight the continued pressures facing the sector and the challenges of delivering the increase in housebuilding needed.

“For SME housebuilders, pressures remain particularly acute. Rising build costs, labour shortages, and lengthy planning delays continue to make it hard for smaller developers to get projects off the ground, while uncertainty around buyer demand is making it harder to commit to new schemes.”

Rizvi welcomed the Government’s recently announced ‘Your First Home’ scheme but stressed that its success should ultimately be measured by whether it helps stimulate the delivery of more homes.

He added: “Providing intelligent, tailored support to SME housebuilders is a cornerstone of our lending strategy at Aldermore. They have a vital role to play, particularly in bringing forward smaller and more complex sites that might otherwise remain undeveloped.

“Faster planning decisions and better access to development finance will be essential to giving these developers the confidence to invest and build.”

The latest ONS figures reinforce concerns about the pace of housing development and the importance of improving access to finance and reducing planning delays to support smaller developers.

Read the full ONS Construction output in Great Britain, August 2026 report.