Construction output continued to edge higher during the spring, with growth driven largely by repair and maintenance activity rather than new development, according to the latest Office for National Statistics data.
The ONS reported that total construction output increased by 1.6% in the three months to April 2026, marking the second consecutive quarterly rise for the sector.
Growth was led by repair and maintenance activity, which increased by 3.4% over the period, while new work rose by a more modest 0.3%.
Six of the nine construction sectors recorded growth during the three-month period, with non-housing repair and maintenance providing the largest contribution, rising by 3.5%.
STRONGER GROWTH
On a monthly basis, construction output increased by 0.1% in April, following stronger growth of 1.5% in March and 0.5% in February.
However, the latest figures suggest that activity remains heavily reliant on refurbishment, maintenance and improvement work rather than new development projects.
Repair and maintenance activity increased by 0.6% during April, while new work contracted by 0.3%.
The data comes at a time when developers continue to face higher financing costs, planning delays and ongoing uncertainty around the wider economic outlook.
REFURBISHMENT PROJECTS
The stronger performance of repair and maintenance activity may also reflect the growing focus on upgrading existing property stock, particularly as landlords and investors prepare for future EPC requirements and seek to enhance asset values through refurbishment projects.
At the same time, the weaker performance of new work suggests developers remain cautious when committing to new schemes, despite ongoing demand for housing and government ambitions to increase delivery.
The figures follow recent industry surveys showing that confidence among developers has weakened amid rising build costs, labour shortages and planning uncertainty, with many increasingly turning to specialist finance to support refurbishment, conversion and value-add opportunities.
While the sector remains some way from delivering the volume of new homes required across the UK, the latest ONS figures indicate that construction activity continues to move in a positive direction, supported by resilient demand for refurbishment and asset improvement projects.
MISSING CONFIDENCE
Neil Leitch (main picture, inset), Managing Director of Development Finance, Hampshire Trust Bank, says: “A fall in private housebuilding will not come as any great surprise to those working across the sector. Just last week, S&P Global’s latest construction PMI showed the sector shrinking at its fastest rate in six years, which reflects the pressure developers are still working through across the market.
“When I speak to developers, the conversation is rarely about demand. Demand is there, but what’s missing is confidence.
“Developers are making long-term decisions whilst dealing with planning uncertainty, tighter viability and less flexibility once projects move into delivery, so it is little wonder output has slowed.”
VARIED OUTCOMES
He adds: “The planning delays that have plagued the industry for years are still there, but now there is the added issue of unpredictability. Outcomes can vary significantly between authorities, and even well-prepared schemes can face uncertain timings and inconsistent decisions.
“That inevitably makes developers more cautious about how and when they commit capital. We are seeing developers place far greater emphasis on deliverability and realistic assumptions before schemes move forward.
“Land expectations have not always adjusted to reflect changing market conditions either, which means margins remain finely balanced across many schemes.
“We also need to remember that today’s output reflects decisions made months or even years ago. The bigger question now is what current conditions mean for the pipeline of schemes coming through tomorrow.
“In a market like this, certainty becomes increasingly important. Well-structured schemes supported by consistent capital and direct access to decision-makers are better placed to maintain momentum through delivery.”
