That is according to construction intelligence firm Glenigan鈥檚 February 2025 edition of its Construction Review.

It reported a sharp decline in major project starts, with few schemes worth over 拢100m breaking ground over the three-month period to January.

It also recorded a drop in main contract awards and planning approvals, although indicated that a recent move by the Bank of England to cut interest rates and the prospect of an economic recovery may help to restore investor confidence.

When it came to housing starts, there were 12% fewer than during the same period a year earlier, although project starts did increase 19% quarter on quarter.

Private housing accounted for 69% of residential project starts, with a total value of 拢8.1 billion. But private apartment construction fell 48% year on year, while student accommodation grew by just 3%.

The South East of England was the busiest region for residential construction, although activity fell 37% year on year to 拢1.6 billion. The East of England and Scotland registered growth of 73% and 86% respectively.

Allen Wilen, Glenigan鈥檚 economic director said, 鈥淲hile housing projects are still lagging compared to last year, the government鈥檚 focus on housebuilding and increasing consumer confidence should help form a growing development pipeline. The key will be translating this potential into actual construction starts.鈥�