According to data gathered by construction market analysts Glenigan, there was some growth in the number of smaller developments starting on site between November 2024 and January 2025, but few schemes worth more than £100m breaking ground.
The February 2025 edition of Glenigan’s Construction Review notes that not only have starts fallen by 19% in value over the past three months, the development pipeline has also weakened, with fewer main contract awards and planning approvals.
This points to the likelihood of further declines in both large-scale and smaller project starts in the months ahead, Glenigan says. However, recent interest rate cuts and the prospect of a gradual economic recovery may help to restore investor confidence as the year progresses.
In the house-building sector, there were 12% fewer housing starts compared with the same period a year earlier. Private housing accounted for 69% of overall project-starts, growing 39% year-on-year to a total value of £8.05bn. In contrast, private apartment construction struggled, falling 48%, while student accommodation saw modest growth of 3%, buoyed by a handful of large schemes.
Glenigan’s economic director Allan Wilen said: “While housing projects are still lagging compared to last year, the government's focus on housebuilding and increasing consumer confidence should help form a growing development pipeline. The key will be translating this potential into actual construction starts."
Got a story? Email news@theconstructionindex.co.uk
