The latest Construction Index shows that new starts increased by 49%, and in the three months to the end of May 2025, starts on site increased by 25%
Glenigan’s June 2025 report shows residential construction as the key performer.
More good news shows that civils, which has been on a sharp decline recently, has slowed its fall considerably.
The Glenigan June index focuses on the three months to end of May
All underlying projects with a value of £100m or less are covered and figures are seasonally adjusted.
The index gives both monthly and yearly analysis.
The April and May index for 2025 have both shown mild increases, and June continues the trend, showing a positive growth for the industry and solid rate of recovery.
Year on year, project starts on site increased by 10% from 2024 to the end of May, and the residential construction market was 45% higher than last year.
Conversely, the non-residential sector saw a fall by nearly a fifth (18%) year on year, which roughly amounts to breaking even in the three months to the end of May.
The fall of civils lessened in this edition, dropping by just 2% in the core measurement period.
“The industry will welcome these results”
Starts on private housing construction increased in the three months by 55%, and by 56% year on year, while social housing grew by 29% in the three months, and by 13% year on year.
Regionally, the South West saw the strongest average performance with 27% growth in the three months and by 24% year on year. The North West saw the largest three month growth at 58%, but by 1% year on year.
Commenting on these results, Glenigan’s economic director, Allan Wilen, says, “The industry will welcome these results as, despite the downturn in major projects[1] recently shown in the May Review, the underlying market, which represents the majority of work across the sector, appears to be on the up. Perhaps a higher degree of ‘relatively’ good news business stories coming from Downing Street is giving many investors that boost they so desperately needed to get building. Certainly, if the very strong figures in the residential vertical are anything to go by, we’ll likely see the curve continue to rise into H.2 2025.
“Of course, the much-anticipate Spending Review is revealed this month and should have an interesting effect on industry confidence. Coming out just shy of our own Spring/Summer Forecast these two documents should offer a fascinating indicator of the future direction of activity across UK construction.”
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