Private housing starts increase 40% in three months to July
Construction starts are down a third on last year, according to the latest data from Glenigan.
The August edition of the analyst’s construction review showed the project starts in the three months to the end of July were also 10% down on the preceding period.
Main contract awards contracted by 24% on the preceding period and were a third down on 2022.
Glenigan’s Economic Director, Allan Wilen, said that “as global and national disruption continues” clients would likely “adopt a cautious approach, pushing back start dates until the economic landscape looks less hostile”.
“Short term, changing Government priorities in the run-up to the General Election are also likely to slow investment in major infrastructure projects, halting activity further,” he added.
Regionally and sectorally, there were few exceptions to this picture of decline.
The South West and East Midlands performed reasonably well against the preceding quarter, with underlying project-starts advancing 9% and 3%, respectively.
Private housing starts increased 40% during the three months to the end of July but were still 26% down on 2022 levels.
“Residential construction offers a glimmer of hope,” said Wilen. “Increases in private housing starts [are] helping to offset sluggish activity in this sector vertical”.
Meanwhile, the commercial office sector posted one of the worst performances, suffering a 35% fall on the previous period and down 50% on last year.
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