According to ONS construction output data, monthly construction increased by 0.2% in March, following a 0.7% increase in new work — offset slightly by a 0.6% decrease in repair and maintenance work.

Despite total construction also seeing a 0.7% rise in the first quarter of this year, total new work saw a drop of 1.9%; RSM says this highlights the ongoing issues for housebuilders.

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Kelly Boorman, partner and national head of construction at RSM UK, said the figures “will be exacerbated by yesterday’s decision by the Bank of England to raise interest rates for the 12th consecutive month.”

She added: “This, coupled with the ongoing slowdown in the private housing sector since the end of last year, suggests that headwinds remain.”

Kelly suggested that for the public sector, one of the challenges the industry faces is the “demand for affordable housing and the constant shortfall” — with the gap between the two continuing to grow as housebuilders “cannot meet demand quickly enough.”

She also commented on the private housing sector where she expects to see “some improvement in the coming months.”

“There is some optimism in the industry about procurement processes and market prices — supported by the stabilisation of materials and the return of migrant labour — ensuring continuity in pipelines,” she continued.