Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Construction Starts Down 20% Year-on-Year, Reports Glenigan

UK construction activity continues to stall, with the latest Glenigan construction index revealing a 20% year-on-year decline in the value of underlying work starting on-site during the three months to the end of August. The report highlights ongoing economic uncertainty, borrowing costs, and investor caution as contributing factors.

The index found that the value of projects under £100 million starting on-site dropped 2% compared to the previous three months and was 20% lower than the same period last year. Residential construction starts saw a particularly sharp fall, declining 15% against the preceding three months and 36% compared with the previous year.

Private housing, the largest component of construction activity, also experienced a downturn. The sector declined 8% against the preceding three months and was 37% lower than a year ago. Social housing starts fell 29% compared to the previous quarter and 30% year-on-year.

Non-residential project starts provided some support to the sector, rising 6% quarter-on-quarter and standing 1% above last year’s level. Civils work starting on-site rebounded by 23% against the preceding three months, though it remained 24% lower than the previous year. Utilities activity increased 5% quarter-on-quarter but was 27% below last year’s level.

These trends are relevant for UK letting agents and inventory clerks, as reduced residential construction activity may impact the availability of new rental properties and social housing stock in the coming months.