In its analysis of construction starts under £100m, Glenigan found that residential construction dipped by 2% from the third quarter.

Private sector activity maintained a downward trajectory, falling 15% in the quarter to finish 29% lower than 2024.

Social housing, however, fared somewhat better, with 28% rises during the Index period to finish 16% up on last year.

Overall construction activity increased 7% to the final quarter of 2025 but remained 7% below 2024 levels.

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This was helped in part by a 14% quarterly increase in non-residential starts with this activity 7% higher than how 2024 ended.

“In the short term, the toughest nut to crack will be the persistent private residential market stagnation,” said Allan Wilen, economics director at Glenigan.

“Languishing in the doldrums, it desperately awaits a return of house-purchaser confidence and faster BSR clearance of high-rise projects; something the government will no doubt chew over intensely over the first half of the year to find a way of easing the deadlock.”