Housing drop-off pushes monthly construction output down

Construction output fell in April after two successive months of growth.

Figures from the Office of National Statistics published today show total output fell by 0.6% in April compared to the previous month.

The figures show new work volumes fell by 1% and failed to be offset by a small increase of 0.1% in repairs and maintenance works.

The ONS said the main contributor to the fall was a drop off in private housing output. Private housing repairs and maintenance decreased by 5.7% (£149m) while new private housing decreased by 3% (£99m). Public new housing fell by 3.6% although public repairs and maintenance was 3.4% up.

The figures are likely to fuel further concern of a slowdown in the housing market, after falling house prices, mortgage lending and home purchases were reported in the past few days.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After last month’s figures fuelled hopes of green shoots of recovery, today’s statistics will come as a blow to the construction sector.

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“Particularly disappointing was that the fall was as a result of a decrease in new work, suggesting that confidence remains low among many big investors.

“It’s little surprise that private housing continues to struggle, and with falling house prices and low mortgage approval rates it will take some months before volume housebuilding shows a turnaround.”

The figures showed a 3.6% monthly increase in infrastructure work, while commercial increased 1.3%.

Output did increase 1.6% in the three months to April 2023 compared to the previous three months, with the increase almost solely through a rise in repairs and maintenance work.