Sun Is Shining, Construction Is Hot

The Sun Continues to Shine on UK construction

according to Glenigan’s July Index which shows the industry continuing to bask in the glow of better performance.

Work actually starting on site increased 49% during the three months to June – that’s a whopping 25% above 2024 levels. Meanwhile, residential construction starts rocketed 76% compared to the preceding three months and rose 64% against 2024 figures .

 

A bit down

Despite ending 3% down on a year ago, non-residential project starts increased 21% against the preceding three months with civils work increasing 6% against the preceding three months but down 30% against the previous year.

 

Positive forecast

The July Index comes hot on the heels of Glenigan’s positive summer 2025 Forecast, published last month. Following a similar pattern to the latter, which predicts a 24% performance uptick over the next two years, the July Index reveals a surge in construction starts and thus all the signs of an industry-wide recovery.

 

Resi goes big

In what will come as welcome news to window installers and other contractors, along with developers and subcontractors nationwide, the big winner in the July Index was undoubtedly the residential sector, with the private vertical posting exceptionally strong results. Overall, it saw starts soar over three quarters (+76%) against the preceding three months and by almost two-thirds (+64%) compared to last year.

This surge is due to the commencement of various residential schemes. One standout example is the £72.9 million Westland Heath development in Sudbury, Suffolk. Comprising 206 houses and 36 flats (242 units in total), this project significantly helped accelerate growth in the sector.

 

Regions

Regionally the South-East, South-West, North-West, North-East, and the West Midlands were all significantly up against both Q.2 and last year. Overall growth was driven by increased sector activity in the South-East. The £56.9 million Portchester Phase 1 development in Hampshire, including 135 houses and 45 flats (180 units in total) was a key contributor supporting the underlying growth.

 

Confidence returns

 

Commenting on the July 2025 Index, Glenigan’s economic director, Allan Wilen, says: “We’re seeing confidence returning at a much faster pace than anyone ever expected. It’s almost hard to believe when you look at how sluggish activity was in Q.4 2024 and Q.1 2025. However, these results, largely bolstered by a flurry of starts in the residential sector, bear out the predictions our economics unit made in its recent industry forecast.

“Whilst recovery is a little slower in the non-residential sector, predominantly civils, the various strategies being introduced by the government and the recent Spending Review promise to deliver on a large scale sometime in the near to mid-future.”

 

Picture: The Glenigan construction starts graph for the quarter up to July 2025.

www.glenigan.com

Article written by Cathryn Ellis
21st July 2025

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