In the three months to April, residential project starts increased on both a quarterly and annual basis.

This period saw over £4bn in project starts begin, compared to £3.5bn in the previous period.

Glenigan noted this was likely due to external factors, such as a rush to complete transactions before stamp duty changes came into force in April.

However, declines were seen across how many detailed planning approvals were being secured and the amount of main contract awards issued.

With the former, the amount of work approved fell from £3bn in March to £2.5bn in April.

A similar decline was seen in the latter, with Glenigan noting this reflected an “increasingly cautious investment environment.”

Overall, private housing remains the dominant force in the UK residential sector and accounted for 50% of all project starts during the quarter.

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Values in this sector rose 37% year-on-year to £6.72bn.

Growth was also evident in the private apartment sector, where values increased 17% to £2.72bn.

However, year-on-year declines were registered in social sector apartments, elderly persons homes and homes, hostels etc.

“The UK housing sector has delivered a strong performance in terms of project starts, boosted in part by time-sensitive completions and continued demand in core regions,” noted Glenigan in its data commentary.

“However, the decline in planning approvals and contract awards points to a more restrained development outlook in the coming months.

“Interest rates, falling house prices, and reduced mortgage activity remain key factors influencing developer confidence and investor sentiment.

“For housebuilders and housing contractors, the landscape remains dynamic, with opportunities continuing to emerge, particularly in regions outside London and across a diversified range of housing types.”