According to official data, in April 2025, construction output in the UK rose by 0.9%, defying the broader trend of declining economic activity. The Office for National Statistics (ONS) reported that overall economic output fell by 0.3% over the month.
April’s construction growth followed a 0.5% increase in March, meaning the sector saw a total rise of 0.5% over the past three months.
Increases were recorded in both new construction (+1.4%) and repair and maintenance work (+0.3%).
Key growth drivers:
- Infrastructure projects: +3.5% — the largest contributor within new construction
- Private housing repair: +1.5%
- Public housing repair: +2.7% — a key factor in the maintenance segment
Housing demand continues to decline
Despite the positive news from construction, the housing market remains subdued. According to the latest survey by the Royal Institution of Chartered Surveyors (RICS), May marked the fifth consecutive month of falling buyer inquiries.
- Net balance of new buyer inquiries: -26%
- Net balance of completed sales: -28%
However, signs of stabilisation are emerging: expectations for sales over the next three months have stopped declining. Additionally, the number of new property listings continues to grow for the 11th consecutive month, with a net balance of +7% in May.
Expert insight
Senior RICS economist Tarrant Parsons commented:
“The housing market remains somewhat subdued due to continued uncertainty in global trade policy and the lingering effect of transactions being brought forward ahead of expected changes to stamp duty at the end of March.”
He added:
“Short-term sales expectations are showing signs of stabilisation. A further significant downturn seems unlikely. Furthermore, the 12-month outlook is more optimistic, with respondents expecting a gradual recovery in activity.”
Parsons emphasised that the pace and scale of recovery will largely depend on whether the Bank of England can continue reducing interest rates.