This decrease has been largely attributed to repair and maintenance work in May which fell by 2.1%.

However, new work only increased by 0.2% during the same month.

Over a three-month period there were signs of growth in construction.

In the three months to May, total construction output was estimated to have grown by 1.6%.

Over the three-month period, both new work and repair and maintenance grew by 1.1% and 2.1%, respectively.

“Higher costs, skills shortages and planning delays are still weighing on activity, making it difficult for developers to maintain momentum,” said Terry Woodley, managing director of development finance at Shawbrook.

“That said, the long-term demand for new homes and infrastructure hasn't gone away.

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“The government's reforms to speed up approvals are a positive step, with continued support and access to finance, the sector will be better placed to build confidence and get projects moving."

Neil Leitch, managing director of development finance at Hampshire Trust Bank, sees the data as reflecting low confidence he sees among developers.

“When I speak to developers, the conversation is rarely about demand,” said Neil.

“The challenge is committing to long-term projects when planning outcomes have become less predictable, viability is under greater pressure and there is less flexibility to absorb further cost movement once schemes move into delivery.

“The change in Downing Street is another opportunity to reset the conversation around housing delivery, though in truth we've seen no shortage of initiatives, announcements and reforms in recent years.”

Azfar Rizvi, commercial director for commercial real estate at Aldermore, added: “Much of this comes back to buyer confidence.

“With affordability pressures continuing to squeeze buyers, demand becomes harder to predict and without that certainty on the demand side, housebuilders are naturally more cautious about committing to new schemes.

"The government's ambition on housing supply is welcome, but hitting its targets depends on giving SME housebuilders the confidence to invest.”