According to the latest ONS data, this downturn comes solely from a decrease in repair and maintenance as new work grew by 0.6%.

Five out of the nine sectors fell in May, with the main contributors to this decline being non-housing repair and maintenance, and private housing repair and maintenance, which fell by 2.4% and 1.8%, respectively.

Total construction output is estimated to have grown by 1.2% in the three months to May; new work increased by 0.9%, and repair and maintenance by 1.5%.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, commented: “A decline in new private housing highlights how difficult it has become for developers to bring forward much-needed homes.

“It underlines the scale of the challenge in navigating a planning process that is too often slow, inconsistent, and under-resourced.

“Planning remains the single biggest obstacle to delivery; local authorities continue to struggle with limited resource, capacity and consistency. The challenge is not ambition.

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“It is the reality of a system that cannot keep pace with demand; planning authorities are now determining fewer applications than they were six or seven years ago, which shows that performance has deteriorated, not improved.

“It is also important to recognise that approvals alone do not guarantee homes will be built.

“Even when consent is secured, developers must still contend with rising costs, labour shortages, and viability pressures that can derail progress.

“We know what the issues are. This is not about political direction. It is about ensuring the system functions effectively on the ground. Until that happens, housing output will remain well below the level needed to meet demand.”

Terry Woodley, managing director of development finance at Shawbrook, added: “Going against the usual seasonal uptick, drivers of the fall could be linked to global economic uncertainty as well as increasing costs for businesses, seeing labour shortages and fewer projects materialising as a whole.

“Looking ahead, the industry needs to remain resolute and agile to return to growth.

“Hikes to the national living wage and employers’ NI contributions, alongside global uncertainty, will continue to pose challenges for developers — but the government’s continued focus on housebuilding should provide cause for optimism throughout the summer months.”