Glenigan October Construction Index shows 8% quarterly fall

Residential construction starts fell again this quarter, down 8% against the preceding three months and by a third (33%) from the same time last year, according to the October 2026 edition of Glenigan’s Construction Index.

Despite this, private housing still accounted for the largest share of activity. It also showed signs of revival, according to the latest report, rising 4% against the preceding three months but remaining 32% lower than a year ago.

In social housing, meanwhile, project starts fell 33% against the preceding three months and 35% against the previous year.

Overall, the index, which covers the three months to the end of September 2026 and all underlying projects with a total value of £100 million or less, showed overall activity edged down 2% on the preceding three months and remains 18% below last year.

Non-resi starts fell  15%

Non-residential starts fell 15% against the preceding three months, with retail and hotel & leisure among the steepest drops. However, civils project starts rose 101%.

Glenigan’s economic director Allan Willen said: “A welcome surge in civil engineering projects partially offset a decline in residential and non-residential project starts during the last three months. Whilst private housing starts stabilised against the previous three months, they remained sharply down on a year earlier.

“Looking ahead, the new first-time buyer scheme announced by the Prime Minister will hopefully help to rebuild market confidence and support a recovery in private housebuilding over the coming months. A Budget that gives developers certainty could get stalled schemes moving.”