Private housing starts jumped 40% in the three months to the end of July compared to the preceding quarter, data from Glenigan shows, bucking a trend of falling industry activity “in a stalled economy”.  

But new private home building in this period is 26% lower than a year ago, adds the construction data body’s August report.  

Glenigan economic director Allan Wilen says: “Despite this, residential construction offers a glimmer of hope, with increases in private housing starts helping to offset sluggish activity in this sector vertical.”  

Across the whole of the industry, covering commercial and civil engineering work, project starts fell 10% in the three months to July against the preceding period, and is a third lower than the same time a year ago.  

The survey blames: “Rising interest rates and inflated material, fuel, and labour costs have shown no signs of easing in the short-term, further weakening investor and consumer confidence.”  

It adds: “Construction starts remained weak throughout the three months to the end of July, with main contracts awards also slumping as the sector continues to be weighed down by a stalled economy.”  

Apart from the “bright spot” of housing starts, the study also pointed to positive data on planning approvals over the period.  

It says that while detailed planning approvals across the sector fell 26% against the preceding three months, this was up 37% on the previous year.   

However, major project planning approvals plummeted by 167% compared to a year ago.  

Glenigan’s Wilen adds: “Starts on site are softening and, as global and national disruption continues, we’ll likely see clients continue to adopt a cautious approach, pushing back start dates until the economic landscape looks less hostile.   

“Short-term, changing government priorities in the run-up to the general election are also likely to slow investment in major infrastructure projects, halting activity further.”