Latest figures from the ONS showed the sector lagging behind the wider economy, which grew by 0.1% in August, as many builders struggled to move from preconstruction to live site starts amid ongoing investor caution.

Across the three months to August, output was still 0.3% higher, driven by private housing repair and maintenance — up 5.6%. But some economists have privately questioned the reliability of these figures, which have fluctuated sharply over the last few years.

Clive Docwra, managing director of property and construction consultancy McBains, said: “Today’s figures reflect the subdued economic picture in the industry at present, with output falling by 0.3% following no growth in July, and underperforming against the overall economy which grew by 0.1% in August.

“The fact that new work fell by 0.4% over the three months to August reflects the cautiousness by investors to commit to spending on projects while economic uncertainties persist. A glimmer of hope is that new work orders increased in August by 0.5%.

“However, many developers will be putting any plans on hold until after the Chancellor delivers her Budget next month, while the industry will be looking for the speech to give further incentives to get Britain building.

“Abolishing stamp duty and reforming council tax – the latter which is still based on values from the early 1990s – would lower the barrier for moving and provide an injection of confidence in the housebuilding market, which remains sluggish.”