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Construction activity falls 19% in 2025



The value of construction work starts fell by 19% in the first three months of 2025, compared to the preceding quarter according to Glenigan.


This fall in activity was also lower than the same period in 2024 by 12%.

The non-residential sector led this fall, with a 24% quarter-on-quarter drop, but residential projects also suffered.

Overall, residential construction starts decreased by 12% in the first three months from the preceding quarter.

Activity was also lower by the same percentage on a year-on-year basis. Within this, private construction suffered with declines of 11% and 9% on a quarterly and annual basis, respectively.

Social housing was the worst hit, with falls of 15% and 20% over the same periods.

Construction performance was varied throughout the UK over the first three months of 2025.

The best performing region was the North East, where activity was 6% better from the preceding quarter and 17% than at the start of 2024.

Northern Ireland, in contrast, recorded a sharp decline with a quarterly fall of 43% as activity was 11% lower than at the start of 2024.

London also recorded significant contraction in construction activity. In the capital, the value of construction starts was down 10% in the first quarter from the end of 2024 and 40% lower than the same period a year before.



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