Construction output figures published by the Office for National Statistics (ONS) for October, showed that all new work climbed 1.2% on the previous month, rising by 4.2% since October 2014.
New orders made from July to September failed to show any growth compared with the same quarter last year, increasing just 0.8% on the second quarter.
The ONS revised up its estimate for construction output in the third quarter, although not enough to push its estimate into the green. It now expects output to fall by 1.9% in the third quarter instead of 2.2%. It added that this upward revision would have negligible impact on its estimate of Gross Domestic Product.
New orders for new homes also dropped 4% between the second and third quarter, with both public and private new housing decreasing, by 16.4% and 2.7%, respectively.
Andrew Bridges, managing director of Stirling Ackroyd, said small steps forward in construction growth were welcome but not enough to address the UK’s housing shortage.
“In London, planning is postponing people’s lives. Our research shows applications for new homes are over four times more likely to be rejected in outer London boroughs. Greater London as a whole is not even giving legal permission for three quarters of the necessary homes, let alone building them in time. This is entirely unsustainable. The construction industry needs more work, Londoners need more options – and London needs permission to prosper as a world city economy.
“Demand for homes is fierce and growing. But with supply still set to be the scrooge of the festive season – it’s left to the New Year to provide a resolution to London’s housing woes. Something’s got to give – and it’s up to future mayoral candidates to prove their construction credentials.”