But public housing reparis and maintenace work increases 11.2%
New private housing output fell by 5.2% in the three months to January, according to the latest growth figures from the Office for National Statistics (ONS).
The figures show construction output overall is down 0.9%, with the fall in private housing new build work among the largest fallers.
However the drop was countered by a 5.3% increase in new public housing output, while public and private housing repairs and maintenance increased 3.3% and 11.2% respectively.
Despite the quarterly decline in overall construction activity, output increased 1.1% in volume terms in January itself, reversing a trend of decline which had persisted for three months.
New private housing work increased 2.6% month-on-month, giving hope that the slump in the market is bottoming out.
Clive Docwra, managing director of consultancy McBains, said:
“After three consecutive months of falling output, the industry will welcome January’s return to growth.
“The 2.6% increase in private housing is particularly encouraging given the performance of this sector over the last few months. The hope is that if mortgage rates ease, it could lead to increased residential demand which in turn could trigger a bigger turnaround in housebuilding numbers
Output in the month was valued at £15.4bn.
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