The construction data provider is anticipating construction activity to bounce back over the next two years with a rise in housing starts, office and industrial projects to drive this.

Overall, an 8% rise in the underlying value of construction project starts (worth up to £100m) is expected.

Glenigan’s outlook sees the underlying value of private housing climbing by 6% in 2026 before increasing by a further 18% in 2027.

This will partly be driven by a freeing up of construction backlog, with the industry still dealing with delays from the Building Safety Regulator. A number of schemes have already been approved and are in the pipeline.

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At the same time such supply-side constraints ease, Glenigan is anticipating rising real incomes and further interest rate cuts to ease house-buyers’ concerns in 2026.

“An improving economy combined with rising public sector investment is expected to support growth in construction activity during 2026 and 2027,” said Allan Wilén, economics director at Glenigan.

“The upturn in consumer discretionary spending has been slow to filter through to related areas such as private housebuilding, retail, and hotels & leisure construction, but a further improvement in household incomes over the next two years is expected to support growth in consumer-related sectors.”