ONS statistics show second quarter increase
Construction figures from the Office for National Statistics have shown that output in Great Britain increased by 1.2% in the second quarter of 2025, when compared to the first quarter.
New work was a key driver at 1.1%, behind repair and maintenance at 1.4%.
Monthly construction output is estimated to have grown by 0.3% in June, although new work fell by -0.4% in the month.
And total construction new orders fell by -8.3% to £976m in Q2 2025, when compared to Q1.
However, the latest UK Report on Jobs survey from KPMG and REC, compiled by S&P Global, showed that construction and engineering saw the greatest demand for workers in July, as the rest of the labour market cooled.
Construction had the softest decline in permanent vacancies during the month, and was the only monitored job sector to post increases in short-term vacancies.
HBF launches Home Building Sector Skills Plan
The Home Builders Federation has launched its latest Home Building Sector Skills Plan, setting out a “comprehensive industry-led roadmap for attracting, retaining and training the workforce needed to deliver 1.5 million new homes during this parliament.”
The home building workforce has long faced a significant skills shortage due to:
- A shortfall in numbers entering roles from the education system
- An ageing workforce: 25% of the home building workforce is aged over 50, meaning the sector is facing an impending retirement cliff edge
- Challenges attracting a wider talent pipeline into the sector
- A lack of understanding of critical future skills needed, and direction from the Future Homes Standard
- Output within the sector fluctuating with demand and economic pressures, leading to additional pressures in recruitment and training
The updated plan includes initiatives aimed at reversing the decline in numbers entering construction roles from the education system, as well as programmes designed to books diversity and capability.
The home building industry is already stepping up to lead on the skills agenda with many interventions showing results. The updated Home Building Sector Skills Plan is a blueprint for the future, providing a long-term approach for attraction, developing and retaining the workforce that we will need to deliver home building targets.
With our members actively delivering training, reshaping talent pipelines, partnering with colleges and creating new routes into the sector, we have the key foundations in place to support efforts to increase the housing supply.
Andy George, Director of Industry Attraction and Skills, HBF
Developer and supply chain updates
Bellway has reported a 14.3% jump in annual completions to 8,749 homes, with average selling prices climbing to £316,000 and housing revenue surging 17% to £2.76 billion.
Despite a stronger spring, the final quarter saw softer demand, though improved private reservation rates have lifted its forward order book to 5,307 homes worth £1.52 billion.
The housebuilder expects to maintain outlet numbers in 2026 and aims to grow volumes to around 9,200 homes next year.
Meanwhile, Persimmon posted a 7% rise in private completions to 3,987 homes for the first half, helping overall completions climb 4% to 4,605 despite a tough market.
Strong pricing and a greater share of its premium Charles Church brand pushed the average selling price up 8% to £284,047, lifting new housing revenue 12% to £1.31 billion.
Underlying operating profit rose 13% to £172 million, with pre-tax profit up 11% to £164.9 million.
However, Marshalls reported a -37% drop in operating profit to £18.1m and a 46% fall in pre-tax profit to £11.7m for the half year, despite revenue edging up 4% to £319.5m.
Growth in building and roofing products was offset by weaker performance in landscaping products, its flagship paving block business.
The latter suffered from price investments, a less profitable sales mix, and manufacturing inefficiencies in natural stone.
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