Construction output fell 0.7% in the third quarter, bucking growth across the wider UK economy.
The Office for National Statistics figures, released today (12 November), show new work fell 1.6% between July and September compared with the previous quarter. Repair and maintenance rose 0.5%.
Private new housing fell 4.7%, making it the biggest drag on new work. Private housing repair and maintenance increased 1.5%.
Iain Wright, partner at tax consultancy Claritas Tax, described the fall in private housing output as “frankly alarming”.
“People are repairing their houses but are reluctant or unable to move,” he said.
Wright argued that planning difficulties and the cost of Stamp Duty Land Tax were among the main factors holding back the housing market.
September brought some recovery, with construction output rising 0.8% after four consecutive monthly falls. Infrastructure new work led the increase, growing 3.3%.
UK gross domestic product rose 0.7% over the same period, up from 0.5% in the second quarter.
The Financial Times reported that services led the expansion, growing 0.9%. Programming and consultancy activity helped drive that increase.
The monthly figures showed GDP rising 0.2% in September. August’s figure was revised down from 0.1% growth to no change.
