According to official data from the Office for National Statistics (ONS) this fell 4.9% in the three months to June to £3.63bn.
The latest ONS data for July also showed new private housing construction output fell by £95m (3.9%) compared to June.
The drop followed several months of good growth with the July total being up 3.4% on last year, and the three months to July up 1.2% on the preceding three months.
However, the drop was expected by some as a concerning move toward a slowing house building sector.
Murray Smith, managing director of SiteSales Property Group, warned that the autumn would be key as pre-Brexit project completion was expected to be strong, but the post-vote hiatus and uncertain market had withheld starts in recent quarters.
Construction slowdown
All new construction work has fallen markedly in Q2 2017, dropping to its lowest level since Q1 2014; at £11.78bn.
The ONS noted: “Following strong growth in June 2017, private housing fell by £95m, representing the main downward pressure on construction output.”
ONS senior statistician Kate Davies added: “Construction output fell for the fourth month in a row, with private housing-building contracting in July after a strong couple of months.”
