The 2.0% fall in construction output in the three months to January 2026, as reported in the latest figures from the Office for National Statistics (ONS), should set alarm bells ringing for an industry already under strain, says the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB, said:
“Alarm bells should be ringing loudly after another fall in overall construction output, marking the fourth consecutive drop in the three‑month figures. The steep decline in private new housing is especially worrying, as this is where we need momentum if we’re to even get close to the Government’s target of 1.5 million new homes. Taken alongside a stagnating wider economy, with 0% growth this month, these figures suggest that confidence is draining away from the sector at a critical moment.”
Berry concluded:
“It is telling that the only area showing growth at the start of the year was repair, maintenance and improvement work, which is largely carried out by micro companies, although this output has dropped overall in the last 3 months. This shows that the nation’s small builders are propping up construction output as a whole, but they cannot shoulder the burden alone. If the Government wants to get construction back on its feet, it must push forward with its changes to the National Planning Policy Framework (NPPF) quickly and ensure local authority planning teams are adequately staffed to ensure other areas like housing can push on with delivery.”