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Residential construction surges 76% in second quarter



The value of residential construction starts rose by 76% in the second quarter, according to Glenigan data.


Surging activity in these three months means residential construction levels are 64% higher than at the same point in 2024.

Overall, work starting onsite — across all construction sectors — was 49% higher in the three months to June, remaining 25% above 2024’s levels.

Glenigan has picked out several significant residential projects as contributing to this uptick.

One standout example it highlighted was the £72.9m Westland Heath development in Surrey which will deliver 206 houses and 36 flats.

Private housing has accounted for much of this growth, with a 95% growth in construction activity in the second quarter.

This has put private housing construction activity at 84% higher than 2024’s levels.

While social housing did increase 11% against the preceding three months, it finished 4% down on the previous year.

Broken down geographically, the South West was the strongest performing region for construction with activity up 31% from the first quarter and 26% higher than 2024.

The North West performed similarly, rising 72% against the preceding three months and rising 23% against the previous year.

The South East also performed well, rising 53% against the preceding three months to stand 39% up against the previous year.

Growth was less marked in London where a quarterly increase of 34% was recorded, but this was 10% lower than 2024’s levels.

It should be noted that the regional data is across all construction sectors, not just residential projects.

“We’re seeing confidence returning at a much faster pace than anyone ever expected,” said Allan Wilen, economic director at Glenigan.

“It’s almost hard to believe when you look at how sluggish activity was in Q4 2024 and Q1 2025.

“However, these results, largely bolstered by a flurry of starts in the residential sector, bear out the predictions our economics unit made in its recent industry forecast.”



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