At a glance
Total UK construction output edged up in Q2 2026, but monthly figures softened into June ahead of this week’s fresh ONS release. (Source: ONS)
Infrastructure new work led the market with 1.9% growth in Q2, underlining the sector’s role as the main engine of output. (Source: ONS)
Future Homes and Buildings Standards will mandate on-site renewable electricity generation on new dwellings from 2027, reshaping housing design and delivery. (Source: MHCLG)
The next ONS construction output bulletin lands on 11 September, with the market watching for confirmation of a slowdown into the second half. (Source: ONS)
Today’s update: the latest ONS data points to modest quarter-on-quarter growth in construction, driven by infrastructure, even as monthly output dipped into early summer and the sector waits for September’s release. At the same time, new Future Homes and Buildings Standards confirm a decisive regulatory shift towards on-site renewables in housing from 2027, with design and cost implications for every new scheme in the pipeline. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of pressures on the UK’s £530bn construction and infrastructure pipeline, today’s ONS figures show infrastructure new work still growing at 1.9% in Q2 2026, suggesting that, despite skills and delivery risks, major programmes continue to underpin output. (Source: ONS)
Building on recent discussion of planning and regulatory reform, MHCLG’s Future Homes and Buildings Standards circular confirms that on-site renewable electricity will be a mandatory feature of new dwellings from 2027, tightening the link between housing delivery and decarbonisation policy. (Source: MHCLG)
Top 5 Headlines
💰 Q2 2026 construction output inches up 0.3% as growth moderates
The ONS reports that total construction output in Great Britain rose by 0.3% in Q2 2026 compared with Q1 2026, indicating marginal real-terms growth across the sector. However, monthly construction output slipped by 0.1% in June 2026, pointing to some softening momentum entering the second half of the year. For contractors, consultants and clients, this combination of modest quarterly growth and a June dip suggests a more fragile workload environment, with increased scrutiny likely on bid selectivity and pipeline visibility. (Source: ONS)
🚆 Infrastructure new work up 1.9%, confirming its role as growth driver
Within the Q2 2026 data, infrastructure new work increased by 1.9% compared with Q1, outpacing overall sector growth. This reinforces infrastructure’s position as the primary engine of construction activity, even as other segments show flatter performance. For civil contractors, designers and suppliers, the figures confirm that transport, utilities and related programmes remain the strongest opportunity set, and will be central to workload planning into 2027. (Source: ONS)
🏗️ Monthly output slips 0.1% in June ahead of new ONS release
The ONS notes that total monthly construction output fell by 0.1% in June 2026, even as the quarter overall remained slightly positive. The next official monthly construction output release is scheduled for 11 September 2026 and will provide updated figures through the summer. The June dip, combined with anticipation around the forthcoming bulletin, will shape market sentiment on whether the sector is heading into a plateau or a more pronounced slowdown. (Source: ONS)
🏛️ Future Homes and Buildings Standards confirm on-site renewables from 2027
MHCLG’s 24 March 2026 circular on the Future Homes and Buildings Standards sets out new regulatory requirements for new dwellings and buildings containing dwellings from 2027. A key change is the introduction of mandatory on-site renewable electricity generation on such developments. For housebuilders, developers and design teams, this locks in a step-change in specification, with implications for land appraisal, roofscape and services design, and supply chains for solar and related technologies. (Source: MHCLG)
🌱 New standards tighten sustainability expectations for housing delivery
The Future Homes and Buildings Standards framework is explicitly aimed at improving the sustainability performance of new build properties, linking regulatory compliance to decarbonisation targets. By embedding on-site renewable electricity generation into Building Regulations from 2027, the policy raises the baseline for energy performance in housing. This will influence viability assessments and procurement choices across the residential sector, and may favour those with established low-carbon design expertise and supply partnerships. (Source: MHCLG)
Also in the news
🚆 Returning today, the strength of infrastructure new work in the Q2 2026 ONS data aligns with recent warnings that the UK’s £530bn infrastructure pipeline is under pressure but still driving sector output. (Source: ONS)
🏗️ The slight June 2026 output decline will make the 11 September ONS bulletin a key reference point for project sponsors reassessing start dates and phasing. (Source: ONS)
🏛️ The Future Homes and Buildings Standards join planning and infrastructure reforms already in train, further complicating the regulatory environment for mixed-use schemes. (Source: MHCLG)
🌱 Housing developers now face a fixed timetable to integrate on-site renewables into standard product ranges ahead of the 2027 implementation date. (Source: MHCLG)
💰 Investors and lenders will increasingly need to factor compliance with the Future Homes and Buildings Standards into due diligence on residential-led schemes progressing beyond 2026. (Source: MHCLG)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this edition is useful, consider forwarding it to colleagues preparing forecasts, viability models or design strategies this week.