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Private housing construction falls 6.5% in Q1



Private new housing construction activity declined 6.5% in the three months to February 2026, according to the latest update from the Office for National Statistics (ONS).


Overall, six out of nine sectors in construction declined during this period.

Total construction output is estimated to have fallen by 2% in these three months, the fifth consecutive fall in the three-monthly series.

Monthly construction output is estimated to have grown by 1% in February 2026, which follows an upwardly revised increase of 0.5% in January 2026, and a downwardly revised decrease of 1.3% in December 2025.

The increase in February’s monthly output came from increases in both new work, and repair and maintenance, which grew by 1% and 0.9%, respectively.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said this data reflects the day-to-day reality of housing delivery.

“Developers are still operating with very little margin for error,” said Neil.

“The challenge is not just planning delays, but planning uncertainty, with even well-prepared, policy-compliant schemes facing less predictable outcomes.

“That makes it harder to commit capital with confidence.”



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