Heady Resi – All Go As Housing Blossoms

• Browse By Section
• News
• Heady Resi – All Go As Housing Blossoms

We have seen a strong start to 2025 as private housing project-starts increased 31% on the previous quarter, up 26% on the same period the year before according to Glenigan’s Construction Index.

The Index focuses on the three months to the end of January 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

 

Residential flying

Residential construction was the standout performer in the February Index, with starts growing against both the preceding three-month period and the previous year.

 

Rates drive confidence

Commenting on the findings, Glenigan’s economic director, Allan Wilen, says: “Momentum is shifting in the UK housing market. After a sharp drop in transactions and prices, consumer confidence is returning, and mortgage applications surged in 2024 – indicating buyers are re-entering the market even as rates hold steady. Housebuilders are responding to the turnaround in market conditions.

“We’re forecasting private housing starts to rise by 13% and social housing by 11% in 2025, meaning construction activity is set to continue its revival. A £1 billion investment in housing improvements and Budget support for SMEs and build-to-rent will further broaden development opportunities, setting the stage for sustained growth in the sector.”

 

Residential

Residential construction performance was strong. The sector experienced a reversal in fortunes during the Index period, with the value of project-starts jumping a quarter (+25%) compared to the preceding three months. Starts also grew 6% overall against 2024 figures.

Private housing performance was positive and contributed to this growth, with starts increasing 31% compared to the preceding three months and 26% compared with the previous year.

Social housing also managed an increase on the previous three-month period, with work starting on site increasing 1% despite standing 26% down on year before.

 

Housebuilders agree

Wilen adds: “This all points to a consensus amongst Britain’s housebuilders to get shovels in the ground, bolstered by a firm government commitment to fresh investment in the built environment. This is having an immediate positive effect on private sector confidence and accelerating project pipelines. Plans to cut red tape in the planning process should also help to unlock development, ensuring housing projects move from approval to construction more quickly.”

 

Non-Residential

The value of starts across non-residential sectors grew 2% during the three months to the end of January, finishing 20% lower than a year ago.

Overall performance was weak, with industrial the only vertical to make significant headway on both the preceding three months and the previous year, advancing by over a quarter (28%) to stand 13% up on last year.

Office and Community & Amenity project-starts were in decline over the Index period, with falls of 18% and 14% against the preceding quarter, respectively, and both declining against the previous year. 

 

Civil engineering

Civils performance was inconsistent, up 27% on a year ago but down 4% compared with the last quarter. Utility starts dragged down this figure, decreasing 13% against the preceding three months and declining against the year before, down 45%.

 

Picture: Housebuilding got off to a flying start in January 2025 according to the Glenigan Construction Index.

Article written by Cathryn Ellis
13th February 2025

Share

---

---

Related Articles

---