Construction output falls 2% in Early 2026 as small builders boost Sector

By Danny BallPublished On: March 13th, 2026Categories: Top Stories

Construction output in the UK fell by 2.0% in the three months to January 2026, according to the latest data from the Office for National Statistics (ONS).

The Federation of Master Builders (FMB) has raised concerns over the decline, warning that the sector is losing momentum at a critical time for housing delivery and wider economic growth.

Small Builders Driving Repair and Maintenance Work

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.”

The ONS data highlights that while private housebuilding has stalled, repair, maintenance, and improvement work remains the only area showing growth, and this is largely carried out by micro and small builders.

Small Construction Firms Supporting Overall Sector Output

“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,” Berry added.

Small and medium-sized construction businesses are therefore playing a critical role in keeping overall output stable, but their capacity is being tested as larger sectors like private housing and commercial construction struggle.

Government Action Needed to Boost Housing and Construction Confidence

The FMB chief urged the Government to take swift action to support housing delivery and construction confidence.

Key measures include progressing reforms to the National Planning Policy Framework (NPPF) and ensuring local authority planning teams are adequately resourced. Berry warned that without these steps, private housing delivery and wider construction growth could stall further.

“If the Government wants to get construction back on its feet, it must push forward with its changes to the National Planning Policy Framework quickly and ensure local authority planning teams are adequately staffed to ensure other areas like housing can push on with delivery,” he concluded.