Glenigan analysed construction activity during the three months to January 2026 and found residential construction starts to be 24% lower than the preceding quarter.

Private housing accounted for the lion’s share of this misfortune, with activity falling by 38% compared to last year and by 30% against the preceding three months.

This trend is at odds with other sectors, with non-residential project starts having increased 6% from the previous quarter and finished 7% up year-on-year.

Overall, construction activity on average declined by 9% from the previous quarter and saw a drop of 16% on 2025’s figures.

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Despite the government’s promises around planning reform, Glenigan warned that investors are still waiting for stronger demand from housebuyers before pushing forward with building projects.

“Housing is often seen as the bellwether for industry confidence and prospects,” said Allan Wilen, economics director at Glenigan.

“This is all too evident in our latest index, with a sharp drop in private residential projects dragging down overall construction starts.

“While a stabilisation in civil engineering work and a rise in non-residential activity are welcome, a strengthening housing market and increase in private housebuilding will be key to lifting overall project starts during 2026.”