Residential construction starts fell by 4% in the three months to October, according to the latest Glenigan Construction Index.

Residential construction continues to struggle, with the value of projects starting on-site falling 29% compared with the same period in 2025.

Private housing starts proved relatively resilient, edging down by just 1% during the period. However, activity remained 28% below the level recorded a year earlier.

Social housing experienced a sharper decline, with starts falling by 12% quarter-on-quarter and 31% compared with the previous year.

In the year to September the value of started projects was 33% lower than the same period last year.

The figures come as the wider construction industry continues to face economic uncertainty and subdued investor confidence.

Across all construction sectors, the value of projects starting on-site fell by 9% against the preceding three months and was 21% lower than in the same period last year.

Glenigan said uncertainty surrounding government priorities and the wider economic outlook continued to weigh on construction activity, with anticipated improvements following the change of government yet to translate into a significant increase in project starts.

Allan Wilen, economic director at Glenigan, said: “No doubt the industry will be frustrated that, despite a new broom in Westminster with a distinctly different approach to his two immediate predecessors, construction starts continued to drift lower during the Index period.

“Whilst weak non-residential and residential construction dragged overall performance down, a rise in civil engineering work should not go unnoticed as a number of important utilities projects get off the ground, particularly in the energy segment.”

Glenigan’s November 2026 Construction Index analyses projects with a value of £100m or less, using seasonally adjusted data, to assess construction activity across the UK.