TL;DR
- Construction output in Great Britain fell 0.7% in the third quarter, led by private new housing (-4.7%) (ONS construction, Construction Enquirer). Separately, UK GDP grew 0.7% (ONS GDP, City AM).
- Angela Rayner told MPs the 1.5 million homes target stays; she chairs the first National Housing Delivery Board on 17 November (Construction News, Brit Brief).
- Tall-building safety approvals take a median 20 weeks, but new applications fell from 64 in September to six in October after the Building Safety Levy began (Building Safety Regulator, Property Week, Planning Geek).
What did the ONS say about construction?
UK GDP had its strongest quarter in more than two years. It grew 0.7% between July and September, with services up 0.9% and production up 0.1%, in a quarter when construction in Great Britain went the other way (ONS GDP, City AM).
In a separate bulletin for Great Britain, the Office for National Statistics (ONS) put total construction output down 0.7% on the second quarter. New work fell 1.6%, while repair and maintenance grew 0.5% (ONS construction).
Housing carried the weight. Five of the nine construction sectors fell, and the main negative contribution came from private new housing, down 4.7% (ONS construction, Construction Enquirer).
Third quarter 2026, change on the second quarter
Output and housing fell while orders and the wider economy grew (ONS construction, ONS GDP).
Was September a turning point?
Not yet. Output rose 0.8% in September after four monthly falls, with August revised to a 0.5% fall and July to 0.2% (ONS construction). Construction Enquirer reports that infrastructure new work jumped 3.3% in the month (Construction Enquirer).
Orders were firmer than output. New orders rose 1.2%, or £107m, in the quarter, mainly from public and private commercial work outside housing (ONS construction). Prices are also moving. The UK-wide construction output price index rose 3.2% in the 12 months to September, a measure of what building work costs to buy (ONS construction).
Industry reaction was cautious. Clive Docwra of consultancy McBains said "longer term worries over house building rates remain" and that the industry is "bracing itself for a challenging winter" (Construction Enquirer).
Can the 1.5 million homes target hold?
The Housing Secretary says it can. Giving evidence to the Commons Housing, Communities and Local Government Committee on Wednesday 11 November, Rayner said: "I do not accept that I need to readdress that target. I know it's a challenge" (Brit Brief, Construction News). The target covers England and runs to the next general election, according to Construction News.
She cited her own numbers. Rayner said construction costs have gone up by 40% (LGC, Brit Brief). On delivery, the Ministry of Housing, Communities and Local Government (MHCLG) estimates 437,900 net additional homes in England between the start of this Parliament on 9 July 2024 and 20 September 2026, a measure net of demolitions rather than a count of homes built (MHCLG, LGC). MHCLG's figures also show building work started on 35,910 homes in April to June 2026, 20% more than in the same quarter a year earlier (MHCLG).
Her answer is a new forum (Brit Brief). Rayner will chair the inaugural National Housing Delivery Board on Tuesday 17 November, to "focus on cutting delays and the remaining blockages holding back housebuilding", she told the Press Association (Construction News). Construction News understands the Treasury, the business department, the Construction Leadership Council and the Building Safety Regulator will take part, with senior figures from Berkeley Group, Vistry and Peabody. A ministry spokesperson told the paper that the attendees are not yet final.
What do the safety regulator's numbers add?
They show a faster gate and a thinner queue. Gateway 2 is the approval a higher-risk building must win from the Building Safety Regulator (BSR) before construction can start. Higher-risk means at least seven storeys or 18 metres, with two or more homes (GOV.UK).
The BSR data, first published on 6 November and covering the 12 weeks to 1 November, put the median approval time for new high-rise buildings and conversions at 20 weeks. It approved 40 of 42 decisions, covering 9,453 homes (Building Safety Regulator, Planning Geek). The previous period's median was 23 weeks, and complex schemes still wait a median 35 weeks, Construction Enquirer reports (Construction Enquirer). The regulator itself warns that the median may fluctuate with application volumes.
The pipeline is moving: 24,689 homes are under construction after clearing Gateway 2, and a further 24,833 are approved but not yet started on site (Property Week).
The sharper detail is the inflow. New build applications rose from 17 in July to 34 in August and 64 in September, then dropped to six in October (Building Safety Regulator, Property Week). The regulator attributes the September surge to applicants filing before the Building Safety Levy took effect on 1 October. Construction Enquirer reports that the BSR reads the October fall as a dip after that surge (Construction Enquirer). The data covers higher-risk buildings in England only, a narrow slice of housing delivery.
| Gateway 2 measure | Figure |
|---|---|
| Median approval time, new high-rise buildings and conversions | 20 weeks |
| New build applications, September | 64 |
| New build applications, October | 6 |
The median comes from the 12 weeks to 1 November, and the application counts are monthly (Building Safety Regulator, Property Week).
Why it matters
Our view: the quarter shows where the 1.5 million target will be tested. Private new housing fell 4.7% in Great Britain while new orders rose 1.2% (ONS construction). Faster sign-off at 20 weeks helps only if applications keep arriving.
Two scenarios, neither a forecast. If October's six applications prove a pause after the pre-levy surge, then approval times could stay near 20 weeks and attention would shift to the 24,833 approved homes still waiting to start (Property Week). If applications stay low, then the pipeline behind the 24,689 homes now under construction thins, and the 1.5 million target gets harder to reach.
FAQ
What is Gateway 2?
It is the Building Safety Regulator's approval that a higher-risk building must win before construction can start, as described by Planning Geek and Property Week.
Why do the construction and GDP figures use different areas?
The ONS construction bulletin covers Great Britain, while the GDP release covers the whole UK, so the two are reported separately (ONS construction, ONS GDP).
What is the National Housing Delivery Board?
It is a new body Rayner will chair on 17 November to look at delays in housebuilding, with membership reported by Construction News as its understanding (Construction News).
Which matters more to delivery over the next year: faster approvals, or a steadier flow of schemes entering the system?
