The value of projects starting on site has fallen nine per cent in the last three months, a fifth lower than the same period last year, according to Glenigan.
In Glenigan’s November Index, which looks at construction starts to the end of October 2026, the value of work starting on sites fell 21 per cent below 2025 levels, indicating continued “contraction” in the sector due to “political uncertainty and economic stagnation”.
Housing construction starts also dipped 4 per cent from August to October and fell 29 per cent compared to the previous year.
Non-residential projects “weakened significantly”, declining 21 per cent quarter-on-quarter, also standing 22 per cent below 2025 levels, Glenigan research showed.
However, civils work rose 21 per cent against the preceding three months, and climbed 19 per cent above the year before.
Regionally, London, which had recently seen its activity rise, fell by 9 per cent in the previous three months, with the West Midlands (-38 per cent), Yorkshire (-3 per cent), and the East of England (-3 per cent quarter-on-quarter) also declining.
Following the Autumn Budget announcement, experts at Glenigan expect the government’s commitments to housing, not raising Capital Gains Tax, and the new Data Centre Covenant will provide the sector with a “small shot in the arm”, boosting recovery in 2027.
Glenigan’s Economic Director, Allan Wilen, said: “No doubt the industry will be frustrated that, despite a new broom in Westminster with a distinctly different approach to his two immediate predecessors, construction starts continued to drift lower during the Index period. Whilst weak non-residential and residential construction dragged overall performance down, a rise in civil engineering work should not go unnoticed as a number of important utilities projects get off the ground, particularly in the energy segment.
“Thinking about last week’s statement, Mr Healey’s ‘steady as she goes’ Budget will hopefully help to stabilise industry conditions over the coming months, especially if it tempers borrowing costs and is able to get the announced first-time buyer scheme off the ground quickly to rekindle residential activity.”
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