On a monthly basis construction output has risen 0.2% in July following a 0.3% growth in June.

At a sector level, four out of nine sectors grew, with private housing repair and maintenance, and infrastructure new work rising by 3.8% and 2.1% respectively.

According to the ONS, the monthly output increase comes solely from an increase in new work (0.3%), as repair and maintenance remained flat.

Terry Woodley, managing director at development finance at Shawbrook, commented: “Construction output is slowly but surely increasing, following a continued rise in activity recorded in June.

“Looking ahead, attention will undoubtedly turn towards the Autumn Budget, currently slated for November.

“The hope is that the Chancellor will continue to build on the commitments made in the Spring Statement earlier this year, which included additional funding to address the skills shortage, as well as landmark planning reforms to cut red tape.

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“With the 1.5 million new homes target still outstanding, and continued noise around large infrastructure projects still making headlines, developers will be keen to receive updates and further support.”

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “These figures point to growth in new private housing, but they come against eight straight months of slowdown reported by S&P Global.

“The government’s pledge to deliver more than a million homes this parliament already looks out of reach.

“Developers want to build, and lenders are ready to support them, but the delivery chain is simply not strong enough to turn ambition into delivery.

“Approvals and starts do not guarantee completions, and unless projects can move through that delivery window, the shortfall will only grow.

“The answer is not just planning reform. Planning teams need proper resourcing, SME builders need the confidence to commit capital, and we must bring new people into the industry before the skills gap becomes irreversible.

“Without those foundations in place, targets will remain headlines rather than homes.”