ONS: private new housebuilding falls 4.9% in July

Private housing new work fell 4.9 percent in July 2026, the largest contributor to a 0.4 percent monthly decline in new construction work, according to the Office for National Statistics.

The drop came even as total construction output edged up 0.1 percent. Repair and maintenance rose 0.8 percent in the month, led by a 1.7 percent increase in private housing repair and maintenance, masking the weaker new-build result in the headline figure.

A 4.9 percent fall in private new housing is a sharp monthly move for a sector central to the supply of homes that may later enter the rental market. It also leaves developers and landlords watching whether July was a one-off dip or a sign that high costs and planning risk are still holding back projects.

Construction output: repairs support July total

ONS said total construction output fell 0.5 percent in the three months to July after four consecutive quarterly-style increases. New work declined 0.4 percent over that period and repair and maintenance dropped 0.7 percent, with private housing repair and maintenance the main negative contributor.

July’s monthly result was different. Repair work was strong enough to lift the overall measure, but it did not change the fact that new work fell. The private housing new-work decline was the largest sectoral drag on total new work, while other parts of construction produced a mixed picture.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said developers were becoming more selective about sites because planning, Section 106, Community Infrastructure Levy, biodiversity net gain and building-safety costs can all add uncertainty before construction starts. He said local authorities also needed the capacity to administer an increasingly complex system.

Planning certainty remains a practical issue

The figures arrive as the Government pursues a higher housebuilding target and changes intended to speed up delivery. But a monthly output series measures work done rather than permissions granted, so it can reflect decisions made much earlier, including whether a smaller developer could secure finance and a viable planning route.

This follows Landlord Knowledge’s report this week on Glenigan data showing residential starts fell 36 percent as costs squeezed schemes. The new ONS construction-output release is a separate monthly measure, but it points in the same direction for private new housing.

Landlords should not read the release as an immediate forecast for local rents. New-build output takes time to filter through to the available housing stock and not every scheme becomes a private rental home. Still, a prolonged weaker run in private housing work would make it harder to improve choice in areas already short of homes to rent.

There is also a split between building new homes and keeping existing ones usable. The July increase in private housing repair work shows activity remains in the existing stock, while the fall in new work highlights the gap between maintaining homes and adding to supply.

What this means for landlords

If you are assessing local supply: track starts, completions and planning approvals rather than relying on one national monthly figure.
If you are funding a development: allow for planning obligations, infrastructure charges and build-cost risk before judging a scheme’s return.
Watch for: whether the next ONS releases confirm a recovery in private new housing work or a longer slowdown.
Bottom line: repairs lifted July’s total output, but private new housebuilding moved the other way.

Editor’s view
Headline construction growth is not enough if it is carried by repair work while new housing slips. The July figures do not settle the outlook, but they add to the evidence that a target on paper will not deliver homes unless smaller schemes can clear planning and cost hurdles.

Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 September 2026

Sources: Office for National Statistics, Hampshire Trust Bank
Related reading: Government fast-tracks homes near stations in planning rewrite