The value of residential construction starts in the three months to the end of August fell 18%, finishing at levels 16% below 2024.

Conversely, non-residential construction activity increased by 14% during the same period to finish 11% higher than the year before.

Optimism had been high going into this period but Glenigan has reported the residential activity of spring and summer, which drove “impressive growth”, has now slowed.

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Glenigan has cited persistent socioeconomic pressures and unpopular government policies as eroding investor and consumer confidence.

“Many contractors and subcontractors will be deeply frustrated by the apparent ‘false start’ performance-wise, especially within the residential verticals,” said Drilon Baca, economist at Glenigan.

“There remains a high degree of uncertainty.

“In the lead up to the widely-rumored Autumn Budget Statement, the sector will not be helped by persistent international pressures and, closer to home, ongoing speculation around property tax increases.”