UK Construction Sector Sees Decline in Project Starts Amid Mixed Performance
- brg_news_room
- Oct 8
- 1 min read
UK: The UK construction sector faces a slowdown in Q4 2025 as the value of project starts under £100 million fell 16 per cent in the three months to the end of September, standing 15 per cent below 2024 levels, according to the Glenigan Index. Residential construction was the most affected, declining 26 per cent quarter-on-quarter and 24 per cent year-on-year, with both private and social housing starts falling by more than a quarter. Non-residential projects also declined, dropping nine per cent from the previous quarter, with education and healthcare sectors particularly weak.
Some sectors showed growth, including office starts, which rose 123 per cent year-on-year, supported by major London retrofit projects such as King’s College London’s £86 million (around USD 105 million) transformation of Bush House. Civils projects increased four per cent from Q2, while infrastructure grew nine per cent over the preceding three months and four per cent year-on-year. Data from the Building Cost Information Service (BCIS) indicates a cooling market, with new orders down eight per cent in Q2 and 12 per cent year-on-year. Only 29 per cent of professionals surveyed expect workload growth over the next 12 months, citing labour costs and availability as primary concerns.
Source: Construction Wave
