At a Glance
Official ONS construction statistics show the value of UK construction new work rose 1.9% in 2025, with output prices up 2.2% year-on-year in December 2025. (Source: ONS)
Building materials prices remain a key pressure point, with the all-work materials price index up 6.4% year-on-year and 0.4% month-on-month in August 2026. (Source: GOV.UK)
Latest ONS monthly output data to August 2026 indicates how far the sector has sustained, or cooled from, the 2025 growth trajectory. (Source: ONS)
Construction Output Price Indices to June 2026 provide an updated view on cost escalation across work types and how it compares with general inflation. (Source: ONS)
Today’s update: with no major announcements, project awards or policy moves in the past 48 hours, the focus shifts squarely to the latest official construction statistics. Together, the 2025 annual figures, materials commentary and mid‑2026 output and price indices sketch the cost and workload backdrop for current contracts and 2027 pipelines. Here’s what you need to know to stay ahead today.
Ongoing Stories
There are no returning items today: none of the latest ONS or government statistics directly continue stories covered in the past five editions of The Daily Build.
Top 5 Headlines
🏗️ 2025 construction new work up 1.9% as price growth moderates
ONS construction statistics for Great Britain show the value of construction new work increased by 1.9% in 2025. The Construction Output Price Index rose 2.2% year-on-year in December 2025, signalling ongoing but more contained cost inflation. For developers, contractors and investors, this combination of modest real growth and easing price pressures frames how far current order books are being built on a slightly more stable cost base. (Source: ONS)
⚙️ Materials inflation still running hot at 6.4% year-on-year
The latest government commentary on building materials reports the all-work materials price index up 6.4% in the year to August 2026 and 0.4% month-on-month. While monthly increases have slowed, the annual rise underscores persistent pressure from inputs across the supply chain. This matters for budgeting and risk pricing, as materials costs remain a key driver of tender levels and value engineering even as overall output price growth has cooled. (Source: GOV.UK)
🏗️ Monthly output data to August 2026 tracks post‑2025 momentum
ONS’s “Construction output in Great Britain: August 2026” bulletin provides the most recent read on sector activity since the 2025 annual statistics. The release captures how workloads across new work and repair and maintenance are evolving against a backdrop of softer demand in some markets and persistent inflation. For project teams, the data offers a reality check on whether 2025’s expansion is being maintained and where capacity may be tightening or freeing up regionally and by sector. (Source: ONS)
💰 Output Price Indices to June 2026 map cost trends by work type
The latest Construction Output Price Indices (OPIs) to June 2026 set out how construction cost inflation is tracking across different classes of work. While headline annual increases have eased from their recent peaks, the indices highlight variation between, for example, housing, infrastructure and commercial projects. This granular view is critical for live contract negotiations and NEC target-cost setting, as it helps benchmark whether project‑level cost movements align with wider market indices. (Source: ONS)
💰 Diverging trends between output, prices and materials set 2027 planning agenda
Taken together, the 1.9% growth in 2025 new work, 2.2% annual output price rise, 6.4% materials inflation and mid‑2026 OPIs point to a market where workload has grown but input costs remain elevated. The gap between materials and overall output price growth implies continued margin pressure unless productivity improves or contract structures share risk more effectively. For boards planning 2027–28 investment, these indices will shape assumptions on contingencies, escalation clauses and the viable timing of major scheme launches. (Sources: ONS; GOV.UK; ONS)
Also in the News
🏗️ The 2025 ONS construction statistics provide updated historical benchmarks that clients and consultants can use to recalibrate pipeline forecasts and business plans. (Source: ONS)
⚙️ The September 2026 building materials release confirms that even modest monthly price rises compound significantly over a year, reinforcing the need for early procurement strategies. (Source: GOV.UK)
💰 ONS monthly output bulletins continue to serve as a leading indicator for labour and plant demand across regions, informing resourcing decisions into early 2027. (Source: ONS)
💰 The Construction OPIs dataset to June 2026 offers a reference point for index‑linking long‑term contracts and reviewing existing escalation mechanisms. (Source: ONS)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this data-focused edition is useful for your next budgeting round or bid review, consider forwarding it to your commercial and planning teams.