Official figures reveal a -0.3% decline
Latest figures from the Office for National Statistics have found that total construction output slipped into negative territory, registering a -0.3% decline in the three months to October 2025.
The key driver was a -1.0% fall in repair and maintenance, which overshadowed a modest 0.1% rise in new work over the quarter.
Monthly construction output is estimated to have fallen by -0.6% in October, following an increase of 0.2% in September.
Meanwhile, the Government has unveiled plans to get more jobless young people into construction.
An £820m initiative sees construction alongside health, social care and hospitality as one of the key sectors to be boosted.
The Government said: “As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment.”
It added: “There is an expectation that young people will take up the opportunities they are offered, and sanctions to benefits could be applied for those who don’t engage with the offered support without good reason.”
It is estimated that almost one million young people are not in education, employment or training.
RICS survey reveals weak market conditions
November’s UK Residential Market Survey from the Royal Institution of Chartered Surveyors points to a subdued property market following the Autumn Budget.
The key indicators – buyer demand and sales volumes – remain in negative territory, with agents predicting that the market may not improve until Spring 2026.
Respondents cited the dampening effect of pre-Budget uncertainty, but welcomed the Government’s decision to limit the high-value council tax surcharge to properties valued above £2m.
Homes England publishes strategic plan
Homes England has published their Strategic Plan 2025-2030, revealing six key objectives for the next five years:
- Significantly increase new housing supply and accelerate housing delivery across all tenures.
- Deliver the biggest increase in social and affordable homes in a generation.
- Unlock new institutional investment for housing and mixed-use schemes and deliver financial returns.
- Collaborate with partners and local leaders to enable development and regeneration that boosts local economic growth.
- Foster innovation and create market conditions to support a dynamic, diverse, and sustainable built environment and housing sector.
- Ensure homes are safe, secure and decent, and residents safeguarded.
The Government’s housing and regeneration agency said that the strategy was in response to calls from partners for more flexibility, long-term funding and tailored support.
Developer and supply chain updates
Berkeley delivered 2,022 homes in the first half of the year, plus 82 through joint ventures, with 89% built on brownfield land, and said trading remained resilient despite market volatility.
The group reported £254m of pre-tax profit, net cash of £342m after share buy-backs, and a 5% rise in net asset value per share to £37.63. It reaffirmed guidance for around £450m of pre-tax profit in both FY26 and FY27 and expects to maintain a strong net cash position.
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Contractors have intensified calls to abolish the CITB after its latest training cuts, with many firms expressing frustration directly and across social media.
Trade body FIS, which opposed renewal of the levy earlier this year, said members believe the revised offer is even weaker and increasingly disconnected from sector needs.
Several specialist contractors criticised the CITB as ineffective and burdensome, describing it as an unnecessary levy on an already pressured industry.
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