The 1.5% fall in repair and maintenance work in Q4 2025, as reported in the latest figures from the Office for National Statistics (ONS), signals a tough year ahead for builders working in the domestic building market, says the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB, said the ONS figures confirmed that total construction output fell by 2.1% in Q4 2025.
He said this shows that conditions for small builders deteriorated significantly towards the end of last year.
“Falling output alongside a drop in new orders shows that workloads are shrinking and confidence is ebbing away across the sector,” he explained. “The weakness in private new housing is particularly concerning as this demonstrates that Government’s housing targets are falling behind.
“With activity declining across most construction sectors and signs that repair and maintenance work is also slowing, many firms are facing a tough start to 2026.
The Government must act quickly to stabilise the economic environment, restore confidence and get projects moving again. That means investing in planning capacity, supporting access to finance, and a clear, long‑term strategy for housing and construction.
“Without decisive intervention, there is a real risk that small builders will continue to pull back, making it harder to grow the economy and deliver the homes the country urgently needs.”
Dr David Crosthwaite, chief economist at BCIS, said: “Given the significant economic headwinds and sector-specific challenges that UK construction faced in 2025, the annual uptick in output is promising.
“Taken with new orders data, which show a healthy rise in annual orders committed to last year, the latest output figures are testament to businesses’ resilience.
“The industry even ended up outperforming the wider economy.
“Of course, that’s not the whole picture. At a sector level, both datasets expose weaknesses in the residential market. Total new housing output only saw a marginal increase in 2025 on 2024 output and new orders for private housing were down. More government support for first-time buyers might go some way to improving demand in the residential sector.
“Beyond the housing and commercial slowdown, confidence seems to be making a hesitant return.
“The Infrastructure Pipeline update, ongoing reforms at the Building Safety Regulator and any further reduction in interest rates and inflation should hopefully catalyse more investment decisions in the months to come.”
