In all new work there was a fall in output apart from in the area of infrastructure. The fall was especially noticeable in private new housing (see graph below). This news follows the latest figures which shows a slowdown in the construction industry with the decrease in year-on-year figures standing at 1.9%. 
 

(Image provided by ONS)

In a comparison of three-month on three-month figures, the trend continues with an identical decrease of 2.1% (ie March, April and May 2016, compared with December 2015, January and February 2016). This was also the third consecutive month to show a decline in the three-month on three-month figures.

The lack of construction activity appears to have caused the value of new housing to soar. There was £1.67bn worth of housing constructed in May 2012, compared with £2.44bn in May 2016. House prices in general have seen continued growth since 2013, with the average house price increasing by 8.2% in the year to April 2016.

In a report published by the Bank of England, the fall in housebuilding was partly attributed to a skills shortage. It stated: “A number of constraints were said to be preventing stronger growth, most notably from skills shortages, planning issues and for some, a tendency for surveyors’ valuations to lag market values, which complicated the finance of building.”

The construction slowdown has also affected the eurozone, with construction output falling by 0.2% in April compared with March, according to figures provided by Eurostat.