Based on the value of work starts for projects under £100m, this activity was also down 25% from the preceding three months.

This weakness in the residential sector contributed to an overall construction activity decline of 11% from the preceding three months and 29% lower than the same point in 2025.

Glenigan’s analysis found residential construction’s weakness was most acute in the private housing space.

Here, project-start values fell by 21% in the three-month period with activity 49% lower than in 2025.

Social housing construction activity also suffered, falling 34% and 38% over these same periods.

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Residential construction’s weakness was partially offset by increases in civils work against the preceding three months.

“With the new prime minister keen on hard hats over academic caps, we might yet see some movement here ahead of winter, so I imagine the whole industry will be keenly looking on to see what further policy announcements he makes over the next few weeks,” said Yuliana Ivanykovych, senior economist at Glenigan.

“However, to slightly temper this optimism, there remains a considerable degree of uncertainty across global markets.

“Tough economic conditions out of Andy Burnham’s control might dent those ambitions usually achievable in normal economic circumstances.”