In the February update of its construction indexes, Glenigan found that private housing activity was 26% higher than the same quarter a year before.

In contrast, non-residential project starts only increased by 2% from the previous quarter and were down 20% on an annual basis.

Private housing was the strongest residential sector but social housing construction also increased, with work up 1% from the previous quarter. This was down 26% from the previous year however.

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Glenigan attributed this improvement in housing construction to housebuilders taking confidence from the government’s push to deliver 1.5 million new homes.

Allan Wilen, economic director at Glenigan, said February’s data showed that momentum was “shifting” in the UK housing market.

“We’re forecasting private housing starts to rise by 13% and social housing by 11% in 2025, meaning construction activity is set to continue its revival,” said Allan. “A £1bn investment in housing improvements and Budget support for SMEs and build-to-rent will further broaden development opportunities, setting the stage for sustained growth in the sector.”