Housebuilding sees a springtime boost: Glenigan Mortgage Strategy

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Construction activity experienced a timely boost in the three months to April with housebuilding leading the way.

This is according to the latest Glenigan Construction Index which shows residential starts rising 24% quarter-on-quarter and up 22% year-on-year, an indication of improved confidence in the sector.

Overall, the value of underlying work starting on-site rose 7% on the previous quarter and remained 3% ahead of last year’s levels, which Glenigan insisted was “a sign of resilience despite challenges elsewhere.”

Housebuilding was the standout contributor, helping to prop up wider industry performance. Private housing alone surged 29% year-on-year, while social housing experienced a 3% upturn annually after a strong spring showing.

Conversely, civils suffered a significant setback. Starts fell 22% quarterly and annually, reflecting a slowdown across infrastructure and utilities projects.

Commenting on the latest data Glenigan’s economics director   Allan Wilen said: “Builders were reporting falling workloads at the end of last year, reflecting a period of real uncertainty across the construction sector. However, the latest figures, particularly in residential, suggest that fortunes may be starting to turn.

He added that while the uptick in activity was encouraging, a sustained recovery would depend on confidence filtering through the supply chain.

“The Government’s much-anticipated spending review in June will be a crucial moment. If it brings clarity on major infrastructure investment, it could unlock momentum not just for big-ticket schemes, but the smaller, local projects captured in this data too; the kind councils are waiting to greenlight.”

Last month the Treasury temporarily cut tariffs across 89 foreign goods, including builder’s products, which it says will save businesses “at least” £17m a year.

Chancellor Rachel Reeves has suspended import tariffs on a range of products, which will see their charges cut to zero until July 2027.

Included in these reductions are plywood and builder’s plastics, “which are essential for construction – making life easier for chippies all over the country,” the department said.

The measure is in line with the government’s drive to build 1.5 million homes over the next five years.


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