Sub-£100m construction starts: Residential strength offsets non-residential decline

Construction starts valued at under £100 million improved in the three months to April 2025, with strong residential performance offsetting a decline in non-residential and civil engineering activity.

According to Glenigan’s latest index of underlying construction starts (valued less than £100 million) to the end of April 2025, starting on-site rose 7% on the previous three months and stood 3% higher than the same period in 2024.

Residential Leads the Way

The residential sector led the improvement in sub-£100m project-starts, with activity up 24% on the preceding quarter and 22% year-on-year. Within this:

• Private housing under £100 million rose 22% from the previous quarter and 29% compared to a year earlier.
• Social housing project-starts increased 29% against the previous quarter and were up 3% on the year.

These results suggest that stabilising interest rates and improving buyer confidence may be supporting a recovery in the housing market—at least for smaller-scale developments.

Mixed Picture for Non-Residential Sectors

Non-residential construction starts under £100 million fell by 5% compared with the previous three months and were 12% down on the same period in 2024. However, performance varied by sector:

• Community & Amenity starts rose 21% quarter-on-quarter and were up 19% year-on-year.
• Health project-starts increased 12% against the previous quarter and stood 2% higher year-on-year.
• Offices saw a sharp 61% rise quarter-on-quarter and a 26% year-on-year increase, helped by the £54 million Blackpool Airport EZ Airport Office Relocation (Project ID: 24231390).

Other sectors fared less well:

• Retail declined 19% compared with the previous quarter and dropped 33% year-on-year.
• Hotel & Leisure fell 26% quarter-on-quarter and 25% year-on-year.
• Education was particularly weak, with starts down 33% on the previous quarter and 54% year-on-year.

Civil Engineering Contracts Under Pressure

Civil engineering work under £100 million continues to struggle. Overall project-starts in this category declined by 22% both on the previous quarter and year-on-year.

• Infrastructure starts were down 9% on the quarter and 7% annually.
• Utilities performed worst, with a 36% decline from the previous quarter and a 39% fall year-on-year.

Value of project starts by sector: February to April 2025

Source: Glenigan

Regional Performance: South Strongest

Regional trends in sub-£100m construction starts varied significantly:

• South West: up 15% on the quarter and 29% year-on-year.
• South East: rose 32% on the previous quarter and 8% year-on-year.
• London: grew 22% on the quarter but remained 10% down year-on-year.
• North West: up 25% on the quarter but still 20% below 2024 levels.
• North East: down 4% on the quarter but 11% ahead of last year.
• West Midlands: rose 16% from the previous quarter but was 6% down on the year.

Value of project starts by region: February to April 2025

Source: Glenigan

Glenigan customers can access detailed project data now. Not a Glenigan customer but want to take advantage of these insights? Request a free demo to see the actionable intelligence we provide.