The latest Office for National Statistics (ONS) data reveals the three-month on three-month time series fell by 2% in November, marking the largest drop in output since August 2012.
In addition, there were three-month on three-month decreases in both all new work, and repair and maintenance, which fell by 2.1% and 1.7% respectively.
However, private housing new work increased by 1.2%, while a 0.4% month-on-month increase in construction output was driven by a 0.5% rise in repair and maintenance and a 0.4% increase in all new work.
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Mark Robinson, Scape Group Chief Executive, said the figures show important confidence and certainty are for the industry and the wider economy.
"However we must not lose sight of the bigger picture. The long-term outlook for the construction sector is positive and the public sector will play a significant role in strengthening confidence in the year ahead, because the country's housing and infrastructure challenges will require significant investment," he said.
"The Government recently reaffirmed its commitment to innovation and investment in November's Autumn Budget, including the extension of the infrastructure fund.
"While private housebuilding remains positive, the output of public housebuilding is still far too low to even come close to addressing the shortage of affordable housing."
Mr Robinson also urged new Housing Minister Dominic Raab to "look seriously at the role local councils can play in affordable housing delivery".
"We need a revolution in council housebuilding, and this means greater resources and powers for local councils," he continued.
"The Government must also seek to create a more connected Britain, and a stronger Northern Powerhouse and Midlands Engine. The UK has a strong pipeline of new work, but we must ensure a joined-up approach on delivery to ensure efficiency and alleviate pressure on the availability of skills."
(LM)
