Retrofit, Repair, and Maintenance: Why the construction output downturn might actually be positive for the sector

According to recent recorded data from the ONS, UK construction output shrank for the 12th month in a row in December 2025, leaving construction output at the lowest it has been since the financial crisis almost two decades ago.

Housebuilding experienced the biggest slog (dropped to 33.5%), one that is noted as being as low as covid-level figures in May 2020.

While concerning, there may be a more positive outlook to be had in the sector. While production remains low, Repair & Maintenance not only consistently outperforms new work, housing and non-housing repair and maintenance continues to rise at a competitive rate.

Key findings from the latest ONS data

• UK construction output fell 0.5% in December 2025
• Repair & Maintenance (R&M) now consistently outperforms new work
• Public housing R&M is 44% higher than public new housing
• Non-housing R&M index rose from 91.2 (2019) to 110.8 (2025)
• R&M has become the stabilising force in UK construction

Chart 1

By December 2025, Repair & Maintenance output was now approximately 14% higher than new work.

What is repair & maintenance? 

Although grouped together, repair and maintenance take different approaches to keep buildings and homes functioning effectively and safely.

Maintenance takes a proactive approach and prevents issues from happening, whereas repair is a corrective measure, looking to fix something that is no longer functioning correctly.

However, what they both ensure is the extended lifetime of a building. They do so by preserving structural integrity, maintaining building compliance, and avoiding expensive and premature replacement throughout a building’s lifecycle. 

Chart 2

Before the Covid-19 pandemic which affected the entire construction industry and the whole world, construction output and All New Work remained higher than All Repair and Maintenance Work at a consistent level.

What is retrofit?

Similar to repair and maintenance, retrofit is one of the key techniques and trending building upgrades to residential and commercial properties, in order to make sure they are up to modern living standards.

At this moment in time, the United Kingdom has one of the oldest housing stocks in Europe. And with rising energy prices, and the pressing need to reduce carbon emissions if we’re to reach net-zero by 2050, retrofitting existing homes is seen as the ultimate solution to improve and modernise existing buildings. 

Why is retrofit, repair, & maintenance inherently good?

While much of the industry, and the Government is focused on the shortage of new buildings and boosting productive output, particularly through its plans to deliver 1.5 million new homes, placing greater emphasis on improving existing housing stock could make a significant difference.

Retrofit, repair and maintenance, are great ways to increase building durability, improve cost-effectiveness of a building, while also helping to reduce its carbon footprint, creating a healthier living environment for residents and local communities.

Retrofit, repair, and maintenance uses existing infrastructure, generates less site-waste than new build projects, and allows for existing home and building owners to continue to benefit from their homes for longer, while they remain more cost effective to heat, cool, and run.

Chart 3

Between 2019 and 2025, R&M (repair and maintenance) emerged as the strongest and most resilient sector across both public and private housing. While new build output fluctuated and showed slower growth, R&M consistently recorded higher values and steady increases, particularly in private housing.

Public R&M also remained stable and significantly outperformed public new builds, averaging around 52–54% higher output, highlighting ongoing investment in maintenance and refurbishment over new construction.

Mark Garry BA (Hons) AssocRICS
Associate Director
+44 (0)7525 903754
mark.garry@watts.co.uk